Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Closing costs, Property tax credit?
We are hoping to reach an agreement with the seller today on a house. We're first time home buyers.
I was trying to figure out closing costs and I keep hearing about how the seller gives you a property tax credit at closing. In our county we pay in arrears. So it sounds like they are giving us what they owe (but havent paid yet) for 2011, and then for the time they owned the home in 2012. Correct?
My question is - what happens to that money? Does the bank take it and hold it in escrow? Do we have to keep it? What I'm hearing is that we get some if it (which then reduces our closing costs), but it sounds like not all.
I'm sure this varies by state and even county, but any experiences could help me understand 
Thanks!
Re: Closing costs, Property tax credit?
what happens to that money? Does the bank take it and hold it in escrow?
The money the seller's owe (up to the day of closing) will be calculated and held in escrow and then the title company will pay/distribute those proceeds for the tax to the county tax office. You will be responsible for taxes as of the date you purchase the house. You may have pre-paids in your closing costs that will require monies for insurance, taxes, payments to be paid at the date of closing.