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#1641242 - 12/20/11 07:28 PM Property Taxes
LilBigTown Offline
Junior Member
Joined: Dec 2010
Posts: 31
If we have a customer who is purchasing a home and is paying the 2011 property tax, where would it be located on the HUD-1? I am having trouble finding the answer, because most places where property taxes are discussed in the FAQS or the Reg itself, the instructions deal with excrow accounts. We do not escrow.

Thanks
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#1641268 - 12/20/11 07:55 PM Re: Property Taxes LilBigTown
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
It's page 1 where charges to borrower go...I can't recall from memory which section that would be..but it should be easy enough to spot.
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#1641284 - 12/20/11 08:31 PM Re: Property Taxes LilBigTown
Truffle Royale Offline

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We put taxes on Line 904.

My question to LilBigTown is why is the buyer paying the 2011 taxes when those would be the responsibility of the seller?

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#1642073 - 12/21/11 10:11 PM Re: Property Taxes LilBigTown
LilBigTown Offline
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Joined: Dec 2010
Posts: 31
This was part of the agreement that the buyer and seller made. I could see it going in both places, line 904 and lines 210-219.
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#1642084 - 12/21/11 10:53 PM Re: Property Taxes LilBigTown
RulesFollower Offline
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Joined: Oct 2011
Posts: 185
If the buyer is paying property taxes that are due, regardless of why, they go on page 1 of the HUD along with any other charge, that left unpaid, could create a lien on the property, ie: HOA dues or loan payoff.

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#1642880 - 12/23/11 04:58 PM Re: Property Taxes LilBigTown
David Dickinson Offline
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David Dickinson
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Posts: 18,762
Central City, NE
Taxes are not a "settlement service" (you can look up the definition in ยง3500.2). Therefore taxes never go in Section L - which includes line 904. Taxes are to be listed in the 100/400 series, as applicable.
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#1643187 - 12/24/11 02:46 AM Re: Property Taxes LilBigTown
Truffle Royale Offline

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Thanks for that clarification, David.
I think that's where we used to put them in the past but now we put them on p1 as you indicated. My mistake.

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