Buyer pays prorated taxes on property that closed at end of year

Q: If I close on a home in mid-December, will I have to pay 2007 property taxes on that home? If so, is there a certain percentage I will owe? How does that work? -- L.K.

A: You will pay property taxes for the time you actually own the place, which would include a half-month's worth for 2007. At the closing, the figures will be adjusted, right to the day. You'll get credit for any taxes the seller owes and hasn't paid yet. The seller will be credited for any prepaid months that you'd be taking advantage of.

Property taxes in some areas don't run from the first of the year, so you may not see an exact half-month's adjustment. At any rate, though, the person running the closing should see that it's all "prorated" fairly.

Reader reveals success

story after following advice

Q: Thank you, Edith. I wrote to you that after I bought my house, the tax office sent me a bill for overdue property taxes paid at the closing. My settlement statement said they were paid. The title company that ran the closing wasn't giving me any help. You said I should go to my library and get addresses and phone numbers of my state's agencies that supervise mortgages and real estate. Then, you told me to write a short letter to the president of the title company explaining what happened and to say if I did not have a response within one month, I'd send a complaint to the state agencies.

I followed your advice and wrote a letter about every attempt I made to resolve the issue with the title company and their lack of assistance each time. Then, in a last attempt, I contacted their chief operating officer and advised her -- via voice mail and e-mail -- of the letter, and I specifically stated where I was going to send it. The next day, I received a call back from the COO advising that she was going to send me a check in the amount charged for the taxes and the late penalty. -- L.K.

A: I'm usually left wondering how things worked out, so it's a pleasure to hear for once.

Finding a good agent

involves leg work

Q: Because it costs the same to work with the best Realtor or the worst, how can a home seller find the best for an overall better experience? -- B.W.

A: Good question. So how do you find a good hairdresser, pediatrician or plumber? Perhaps you start by asking friends and neighbors whether they've had a good experience with someone. Then you look at for-sale signs in your neighborhood, read ads and call at least three brokerages that are active in your area. Invite each to send an agent over. You won't have any obligation until and unless you sign a listing contract.

Listen to each agent's presentation, and ask questions: How long have you been in business? What have you sold this year? What would be your marketing plan for this house? What suggestions do you have for sprucing up my property? How did you arrive at the price you recommend?

You'll learn a lot, and then you can list with an agent whose style fits your way of doing things, someone with whom you feel confident.

Break in chain of title can be

resolved by insurance company

Q: I want to sell my property, but there is a break in the chain of title. How do I resolve this? I received the property via quitclaim deed. I have owned it for eight years, and I have paid the taxes. -- via e-mail

A: Perhaps you can find someone who agrees to buy the problem along with the property and accept a simple quitclaim deed, as you did. Or, if you have title insurance, your insurance company has some responsibility for clearing up the problem. Otherwise, your recourse is a "quiet title" lawsuit.

Owner entitled to

any addition to home

Q: My mother paid to add an addition to a relative's home so she could live there. This addition has not been put in her name, and she is wondering whether it is too late, eight months after it was finished. -- via e-mail

A: It wouldn't have made any difference if she'd looked into it earlier. Anything permanently added to the existing building becomes part of the real estate and belongs to whoever owns the land. It'd be pretty complicated legally to make your mother owner of just that addition.

If she wants some financial claim in case the property is ever sold, it would be simpler for the homeowners to give her a mortgage for the amount she spent. That, though, could make for problems if they ever wanted to refinance. Or I suppose they could make her part owner of the whole property, again with the potential for legal complications down the line.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.