Legal Question in Real Estate Law in Ohio

Proration of Taxes at Closing

I sold a rental property in August of 2002. Taxes paid by the Seller were based on the taxes for 2001 and prorated to the date of Closing. (Since taxes are always paid 1 year in arrears). The Buyer is now coming back and saying I owe him for more taxes as he just got his tax bill for 2002 and due and payable in 2003 and it has increased. My sales agreement states ''Buyer shall pay all taxes which may become due and payable following date of closing. Real estate taxes and assessments are subject to change by governmental authority.'' Can a Buyer come back 6 or 12 months after the sale and ask for more prorated taxes?


Asked on 3/11/03, 3:42 pm

1 Answer from Attorneys
Michael Buschbacher Michael Buschbacher Co. LPA

Re: Proration of Taxes at Closing

Hi,

Taxes are paid 6 mos in arrears in Ohio. I'd have to see your contract but it is highly unlikely you owe anything to the buyer. The payment was a good faith estimate of taxes and you probably don't owe any more.

Michael Buschbacher

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Answered on 3/11/03, 9:47 pm


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