property tax drastically different from closing docs

[David Hedges]

Around the end of November I closed on a property. in the closing docs they had estimated property tax to be a little over $300/yr, and credited about $280 to me at closing for the first 11 months tax. Tax time rolled around and I found that the property tax is really $1201/yr, and they really should have given me about $1100.

How do you go about resolving the tax discrepancy? This is the first time I've had a discrepancy like this. Do I reach out to the title company?

I've left a voicemail with my Realtor and the title company at this point, but it being a holiday weekend, I'm not sure I'll hear back until early next week.

[Tchaka Owen]

@David Hedges - there isn't a tax discrepancy. Indiana pays property taxes in arrears so the seller paid you for the 11 of the 12 months in 2018 that they owned it. That way, although you're paying the entire amount, you're being credited for the time that the home wasn't yours. Indiana has apparently adjusted (likely based on your sales price) for 2019 and at the end of the year, you'll owe that higher amount.

Four questions you should ask the settlement company (not necessarily your agent):

1. It appears that taxes are paid semi-annually in IN, so what's the reason it's all on you?

2. Second payment's due Nov 10th, so what's the reason it wasn't paid? And if there were penalties, did you have to pay? (you shouldn't)

3. Did IN not yet provide any indication of what 2019 taxes would be? 

4. What's the reason for the large jump?

@Bill B. - many states pay in arrears.