Should I pay the taxes due on property that is in escrow?

[debodun]

What is the name of your state (only U.S. law)? New York

The estate property of which I am the administratrix is in escrow. I am just waiting to hear from the estate attorney when the closing is because the deal hit a snag when a lien was discovered. The County taxes are due by the end of January. If not paid, a penalty will ensue. I asked the attorney and he said I could go ahead and pay them, or wait until the closing (nothing like a definite answer!). Right now, I am not sure when the closing will be. If I pay them, will the estate receive anything back , pro rata, on whatever part of the year remains for which these taxes were paid?

 

[nextwife]

Contact the closing agent. Ask about adjusting the closing statment to reflect recently paid taxes if you pay them with a certified or cashier's check and present the closing agent with a reciept. Would you be paying with estate funds? The closing statement would normally either reflect taxes to be paid out of closing, if still due, or pay more out in proceeds, if not still due, so taxes need to be paid one way or the other. I presume the offer does NOT provide for the buyers to pay all taxes due PRIOR to closing, correct?

 

[debodun]

The buyer is not obligated to pay impending taxes, according to the contract. The paymnet would be coming out of the estate checking account.

 

[nextwife]

Then the estate is better off paying the taxes now, in a documentable way that is acceptable to the closing agent. The estate is reponsible for those taxes per your contract, and delays in paying them create more fees and penalties associated with bringing taxes current at closing.

 

[LdiJ]

Then the estate is better off paying the taxes now, in a documentable way that is acceptable to the closing agent. The estate is reponsible for those taxes per your contract, and delays in paying them create more fees and penalties associated with bringing taxes current at closing.

I agree...there is no reason to pay them late via closing.