- Published on Friday, 03 February 2012 13:54
By Janette Cornelius
If you are thinking about buying or selling a home this year, we have a few points you should make note of while in your final closing. Your closing agent will probably pro-rate the property taxes for you and tell you how much each of you owe. You should pay extra attention to whether the buyer or seller will be credited for the other person’s part of the tax. Doing this could prevent that “shock” you might have when your property tax statement comes in December. Even though you may have only owned the property a couple months, the tax statement will reflect the entire year. The statement is not pro-rated. If you have any questions of who (either the buyer or the seller) is responsible for the tax, we advise that you contact your closing agent.
Also when buying a home, you can choose to set up an escrow account with your mortgage company for your property taxes. A specified amount will be included with your mortgage payment each month, and set aside in an escrow account. The mortgage company will pay your property taxes from this account. Your mortgage company will then contact the treasurer’s office and request the amount of your taxes. If you choose this option, you will not receive a tax statement for the mortgaged property when we mail statements in December. Your statement will be sent directly to the mortgage company. Please remember if you do not select this option, your mortgage company will not request your taxes and you will be responsible.
If you sell your home or pay off your mortgage, you will need to contact your mortgage company regarding your escrow account. Your mortgage company may refund the amount in your escrow account directly to you. However, depending on your mortgage company and the time of year in which you sell, your mortgage company may continue to request your taxes from our office and pay them for that year. Once again, please keep in mind that you should go over this information with your closing agent, and call him or her if you have any questions or concerns.
When filing a mortgage, mortgage tax and a certification fee will be paid in the treasurer’s office before it is recorded in the county clerk’s office.
68 O.S. §1901
A real estate mortgage tax is charged on every type of conveyance (document of property transfer) issued for the purpose of collecting money as a lien against real estate. This tax is to be paid by the Mortgagee, Mortgagor, or any other interested party (68 O.S. § 1904). Lenders must ensure that the Mortgage Information Form (No. 443) is presented with each mortgage instrument filed. The amount of the tax depends on the terms of the mortgage. The mortgage tax is rounded up to the next $100.00 when paying the maximum amount (10¢). Notarized affidavits must accompany all modifications.