Property taxes are prorated between seller and buyer based on the closing date. The seller pays through the closing date, and the buyer pays from closing forward. If the seller has prepaid beyond the closing date, they receive a credit. If taxes are unpaid, the amount is deducted from proceeds. Watch for pending tax grievance results, which can trigger post-closing adjustments requiring coordination between parties.
From the seller playbook: Property Tax Proration and Assessment Risk in NYS Closings
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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