So what does change have to do with a real estate contract? Well, believe it or not, we're going to talk about paragraph twelve, which is Prorations. It's kind of like keeping the change in a real estate deal. When you sell your house, those taxes and estimated fees are based on a full year's length.
What happens if you don't buy the house right at the end or right at the beginning of the year?
Those fees are prorated. So those things that are due by the seller are actually credited to the buyer when they purchased the home for the time of that year that they've owned the property. Does that make any sense? If not, give me a call. It's kind of confusing. But all you need to know is that you get to keep the change and you don't owe taxes when you don't live in the house.
