Who is typically responsible for paying taxes due on improved property under the New Home Contract?

In a New Home Contract, the seller is typically responsible for paying taxes due on improved property. This arrangement is grounded in the understanding that the seller holds the title and ownership of the property until the transaction is finalized and the buyer takes possession.

It is customary for sellers to cover property taxes incurred prior to the closing date, as they are the ones benefiting from the ownership during that period. Once the property is transferred to the buyer, the responsibility for future taxes will then shift to the buyer. This is an important aspect of ensuring that all financial obligations associated with the property are managed appropriately through the different stages of ownership transition. Understanding this responsibility helps both sellers and buyers to better navigate their financial and legal commitments within a real estate transaction.