• Steinbach 204.326.3442 - 85 PTH 12 North, Steinbach, MB, R5G 1A7
  • Niverville 204.388.9300 - Box 1120, 62 Main Street, Niverville, MB, R0A 1E0
 

Selling a Home: Tax Adjustment

Property taxes must be paid on all residential real property as charged by the city, town or municipality in which the property is located. The tax period for all properties is the calendar year, despite the fact that the due dates for the payments of taxes will differ depending on the city, town or municipality rendering the tax bill. It is the usual practice that the owner of the property at the time of the due date of the tax payment will attend to the payment of the tax bill in full. However, the non-paying party will reimburse the other party for their portion of the tax bill by way of adjustment to the purchase price. It the usual practice of law offices in Manitoba that the seller’s counsel prepare a Statement of Adjustments for review by the buyer’s counsel to ensure that this adjustment is made correctly.

If you have a tax account with your lender who is attending to the payment of the taxes on your behalf, the sale of your property will require you to close out your tax account with that lender. If there are excess funds in the tax account, then the lender will typically apply it against the mortgage pay-out amount, but if the tax account is over-drawn, then the amount owing will be added to the amount of money required to pay-out your mortgage with them.

Notice: The articles on our website are provided for general information purposes only and should not be relied upon as legal advice or opinion. They reflect the current state of the law as at the date of posting on the website, and are subject to change without notice. If you require legal advice or opinion, we would be pleased to provide you with our assistance on any of the issues raised in these articles.

 
organism-mainframe
organism-mainframe
organism-mainframe
organism-mainframe