If your tax grievance is still pending at closing, include a provision in the contract addressing how any future refund will be handled. Typically, the refund is split based on ownership periods, with the seller receiving the portion attributable to their ownership. Without this provision, the refund goes to whoever is the property owner when it is issued - which may be the buyer. Your attorney should draft specific language addressing this scenario.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
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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