Ohio Property Taxes and the Settlement Statement
What happens on a Settlement Statement to Seller Taxes?
Ohio pays their property taxes in arrears. Meaning we pay 2015 taxes in 2016. This can prove to be challenging concept to home buyers and can lead to confusion when they look at the Settlement Statement. Basically, you need to know that the Seller will pay for the taxes on the home up to the date they close on the property. Those taxes will be a “credit” on the Buyer’s Settlement Statement to be paid out in the correct time through escrow and vice versa the Seller’s Settlement Statement will see a “debt” of those taxes on their side of the statement.
I know this can be a confusing concept. So please, don’t hesitate to contact me with questions.