Did you buy or sell a house in Texas this year?
Your Texas property tax bill should arrive in the mail soon if it hasn’t already come. Do some simple math and see if the credit was correct.
1. Take your current tax bill and divide it by 365. This gives you a per day rate.
2. Calculate the number of days between Jan 1st and your closing date on the settlement statement you have from your purchase.
3. Multiply the answer from #1 (what was actually owed) with the answer from #2 (what you actually paid). This would be the tax proration based on current taxes.
4. Compare the answer in #3 to the credit or what you paid on the settlement statement.
If the current property taxes are higher than the proration done at closing, the buyer or seller may request the difference from the other party in writing per the paperwork you signed at closing.
If you bought or sold a house in 2018 check the new statement and compare what is owed versus what you paid or what you received. If it is a substantial difference, contact the title company where you closed and ask them to verify what you have found and to help you contact the other party. Remind them that part of the paperwork you signed when you bought or sold at the title company specifically states that if there is a difference the seller and buyer will work it out….but you need the title companies help to contact the other party.
Title companies use a third party company to order a tax certificate to determine what is owed when you sell a house but if the property value is a lot higher, exemptions are not transferred or calculated properly or if a mistake was made you can get assistance to ask for a refund.
We recently had a seller contact us because the settlement statement collected over $1500 in taxes that were not owed. Check your settlement statement. It might be worth a few extra dollars in your pocket.