Property Taxes Are Paid Early if You Close After Oct. 1st.
This is one of those things that happens if you're selling, buying or refinancing a home this time of year at the closing table. So be prepared for property taxes to be paid the last quarter early. It's just the way it is. An explanation follows:
In Texas, property taxes are paid in arrears, meaning that 2012 property taxes are due at the end of the year as opposed to the beginning. Tax bills are sent out around October 1st each year and are due by January 31st of the following year. In closings that take place prior to October 1st, the seller credits the buyer for taxes from January 1 through the day of closing.
The buyer then pays the full year's property tax at the end of the year. However, in closings that take place after October 1st, and if the tax bills are available, the buyer credits the seller for taxes from the day of closing through December 31 and the seller pays the entire year's property taxes.
Property tax debits and credits are shown on the first page of the HUD closing statement as part of the seller's and/or buyer's closing costs. You can get this information from the title company as soon as you have an executed contract or refinancing information is complete.