Need clarity on this contract language

[Keith Agnello]

Hello BP,

I just want to make sure I understand this clearly and any input would be great. In a wholesale contract it says:

PRORATIONS:Real property taxes will be prorated based on the current year’s tax without allowance for discounts, including homestead or other exemptions.Rents will be current and be prorated as of the date title transfers.

Does this mean the seller is responsible for any outstanding balance on the property before the closing date? And if there is a balance on the property then the funds from the buyer will clear any debt.

Thank you

[Justin Fernandez]

Essentially, the buyer gets a credit for the taxes due depending on the year. It is for the full amount excluding the homestead exemption. 

For example, Owner has taxes for 1000/year that are due on Oct 15.  Due to homestead owner was only paying 750. Close date is Oct. 1, buyer receives credit for ballpark of 976 during closing. 

If they don't know, your closing company title of lawyer, should be able to give you factual numbers.