What happens to a seller if they do not pay the property tax bill by the closing date?

In real estate transactions, property taxes are often prorated between the buyer and the seller at closing. This means that both parties can share the responsibility for any tax liabilities associated with the property. If the seller has not paid the property tax bill by the closing date, this typically results in the closing process including an adjustment where the unpaid tax amount is prorated and may require the seller to reimburse the buyer for the period of time they owned the property in the current tax year.

In many cases, the escrow company will handle this proration and distribution of tax responsibilities, ensuring that the buyer is not bearing the full burden of the taxes incurred while the seller still owned the property. The details of how this is managed can vary based on local laws and the agreements made in the sale contract, but the concept of sharing tax responsibilities is a common practice in real estate transactions.