Which document provides the official current property tax amounts and any outstanding balances for a property during closing?

Which document provides the official current property tax amounts and any outstanding balances for a property during closing?

• A. Tax certificates or statements from the municipality.
• B. Mortgage statements from the lender.
• C. Seller's tax bill from memory.
• D. Deed transfer document.

Answer: (A)

Official municipal tax certificates or statements provide the exact current property tax amounts and any outstanding balances as of a specific date, which is essential for accurately prorating taxes at closing. They come from the municipality and reflect the true tax liability, including any arrears or adjustments, so both buyer and seller know what is owed up to the closing date and what will be the buyer’s responsibility afterward. This makes them the authoritative source for closing tax figures. Mortgage statements show loan details—how much is owed on the mortgage, payments, and interest—not the property tax bill, so they don’t inform you of tax amounts or any municipal charges. A seller’s tax bill from memory is not reliable or current and can be inaccurate. The deed transfer document records ownership change but does not itemize current tax amounts or outstanding balances.

Official municipal tax certificates or statements provide the exact current property tax amounts and any outstanding balances as of a specific date, which is essential for accurately prorating taxes at closing. They come from the municipality and reflect the true tax liability, including any arrears or adjustments, so both buyer and seller know what is owed up to the closing date and what will be the buyer’s responsibility afterward. This makes them the authoritative source for closing tax figures.

Mortgage statements show loan details—how much is owed on the mortgage, payments, and interest—not the property tax bill, so they don’t inform you of tax amounts or any municipal charges. A seller’s tax bill from memory is not reliable or current and can be inaccurate. The deed transfer document records ownership change but does not itemize current tax amounts or outstanding balances.