In a real estate transaction, property taxes are typically assessed based on ownership as of January 1st of that tax year. By the time of closing, the seller is generally responsible for any property taxes due up to the date of closing. This responsibility aligns with the nature of ownership; since the seller owned the property prior to the sale, they are liable for the tax period in which they held ownership.
Depending on local practices, there may be a proration of property taxes at closing, which means the buyer may owe a portion of the taxes for the time they will own the property in that tax year. However, the responsibility for payment on the day of closing primarily lies with the seller because they are the one who has had legal ownership up to that point. The local government, while it collects the taxes, is not responsible for who pays on the day of closing, and dividing the responsibility between both parties is not standard unless explicitly agreed upon in the sales contract.
Understanding these principles is crucial for those involved in real estate transactions, as they help clarify the financial obligations linked to property ownership.