failure of title agent to follow closing instructions

[axlway77]

What is the name of your state?What is the name of your state?What is the name of your state? PA
I purchased my first house this summer and just received a tax bill. After review it was discovered the closing instructions indicated to collect the taxes for 1 year. The HUD -1 indicated only one month was collected, but the tax statement I received indicated 1 year was collected. The tax collector sent a bill with a 10% penalty for failure to pay. My mortgage company paid the taxes out of escrow, but my question is as follows:
The paperwork I received indicates if the closing agent fails to follow the closing instructions they will be held liable. Is the closing company liable for the entire taxes or at least the tax penatly for their failure to follow closing instructions. At closing I stated I should not be receiving that much money back, but the indicated their figures were correct.
Thank you.

[nextwife]

Are you sure that it doesn't show one month collected from you, and the earlier months of the year collected from the seller for the portion of the year that they owned the property? And then collected and sent to the lender's escrow account?

What is your tax payment schedule? When do the tax bills come out and when are they due? Ours is billed in Dec for the prior year, and may be paid in December or January, without any delinquency. Are you saying the prior year taxes were still unpaid when you closed and NOT paid off at closinG?

[axlway77]

The taxes for the next 12 months were due at settlement. Settlement was June 30th and the tax bill is dated July 1st.

[LindaP777]

Originally Posted by axlway77

The taxes for the next 12 months were due at settlement. Settlement was June 30th and the tax bill is dated July 1st.

Property taxes are paid one year in a rears (arrears?) . . . your seller should have paid you all of last years taxes to you at closing (as they owned the house last year). So, even though you are being billed for last years taxes, the seller has already paid for them up until the day of closing.

It would be odd for your bank to hold 12 months of property taxes in escrow, so I think you are mistaken. As to why the taxes weren't paid, ask the bank who is holding the escrow. If they were late in paying, then I would ask them to pay the 10% penalty, but think it's unreasonable to ask them to pay for all of your property taxes.

[HomeGuru]

Originally Posted by axlway77

What is the name of your state?What is the name of your state?What is the name of your state? PA
I purchased my first house this summer and just received a tax bill. After review it was discovered the closing instructions indicated to collect the taxes for 1 year. The HUD -1 indicated only one month was collected, but the tax statement I received indicated 1 year was collected. The tax collector sent a bill with a 10% penalty for failure to pay. My mortgage company paid the taxes out of escrow, but my question is as follows:
The paperwork I received indicates if the closing agent fails to follow the closing instructions they will be held liable. Is the closing company liable for the entire taxes or at least the tax penatly for their failure to follow closing instructions. At closing I stated I should not be receiving that much money back, but the indicated their figures were correct.
Thank you.

**A: the escrow/title company messed up. Deal with them.