How are items like utilities, dues, and taxes handled at closing?

The Barr Team First Time Homebuyer Info, Info for Home Buyers, Info for Home Sellers, Info on Real Estate Transactions 0 Comments

In this video, Henry Barr of The Barr Team explains how utilities, dues, and taxes can be split between Buyers and Sellers when buying a home.
Hi this is Henry from The Barr Team here at ReMax Properties of the Summit in Frisco. Trying to answer a couple of questions for people that have asked, one of the questions that has come up is “How are items like utilities and dues handled at the closing?” That’s fairly easy most of those types of items are pro-rated. So whoever owns it up until a certain point of the year pays that part and then whoever owns it from the rest of the year forward pays that part. Those are fairly straightforward as to how they are done. One of the others that is a little bit different in Colorado compared to some states, is that in Colorado taxes are paid in arrears, so you cannot pay your taxes forward you are paying your taxes in Colorado backward. So let’s say for the year 2017 if the home closes on June 30th then the Seller will credit the Buyer half of the year’s taxes and then the Buyer will be responsible at the end 2017 to pay all of the 2017 yearly taxes.