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There are many miscellaneous,
ongoing expenses associated with home ownership. Such expenses may
include one or more of the following: real property taxes, sewer
assessments, fire district taxes, water, heating oil and common
expense assessments (for condominiums). It is likely that a seller
will have paid some of these items in advance, covering a period
of time that extends past the date of closing, i.e., the date of
transfer of title. Therefore, adjustments will be made to reimburse
the seller for expenses paid in advance that will relate to a period
of the buyers' ownership of the property. Many of these items have
different payment periods.
There will also be instances
when items are not payable until after the period of service has
passed. In that event, the seller will reimburse the buyers for
expenses the buyers will incur after the closing which relate back
to the period of the seller's ownership. There may also be adjustments
for miscellaneous expenses that may have been negotiated between
the parties during the pre-closing period. For instance, the seller
may agree to do some repair on the house or substitute an additional
item (such as a fixture) in lieu of having to do repairs, or there
may be an agreement to reimburse the buyers for the cost of having
the repairs completed after the buyers take ownership. All of these
arrangements or agreements should be reported to us prior to the
closing so they can be included in the financial calculations and
adjustments that we prepare prior to the closing.
Portions of
this page are reprinted with the permission of CATIC.
The information
you obtain at this site is not, nor is it intended to be legal advice.
You should consult an attorney for individual advice regarding your
own situation.
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