Property Taxes in Alabama & What Homestead Means | Buying a Home in Huntsville Alabama скачать в хорошем качестве

Property Taxes in Alabama & What Homestead Means | Buying a Home in Huntsville Alabama

Let's discuss property taxes for when your selling a home or buying a home in Alabama along with what homesteading real estate means. When buying or selling a home in Alabama, property taxes are prorated at closing; not paying attention to the homestead laws can cost you thousands of dollars a year in property taxes. The tax year runs October 1st through September 30th instead of being based on the calendar year. After the taxes accumulate, the government charges the taxes and collects those taxes which is called ‘paying in arrears'. For example, if you close on June 15th the seller will actually owe taxes from the previous October 1st through June 15th. The attorney will collect the seller's prorated portion of the taxes and give that to the buyer at closing so that the buyer can pay the full year taxes at the end of the tax year. If you're financing a home, those taxes will go into your escrow account and the bank will pay those taxes at the end of the year. If you're paying cash or you're using a commercial loan, then those taxes will be prorated in your pocket; you'll need to save those and have them ready for the end of the tax year. Another thing to be aware of about Homestead. When you close on your home, you're going to close with an attorney's office. That attorney is going to take the deed and record it with the courthouse. Once that deed comes back from the courthouse, the attorney is going to mail you that deed which is typically several weeks after closing. You don't want to forget to take that physical deed along with your driver's license down to the local courthouse or a satellite office to claim your homestead exemption. If you don't, when the next tax year rolls around your taxes will be double for that tax year. __________________________________________________________________________ Matt Curtis Real Estate is the #1 Real Estate Team in Alabama, call us today at 256.270.9393 or visit us online: www.mattcurtisrealestate.com For all things MC Real Estate follow us:   / mattcurtisrealestatehuntsville     / mattcurtisrealestate