When are New Jersey property taxes due, and what do sellers owe at closing?

The Division of Local Government Services says property taxes in New Jersey are due in four installments during the year: February 1, May 1, August 1 and November 1. That page was captured in 2011, so check the current dates on your tax bill. Your municipal tax collector is the source for your account balance, and the bill shows what has been paid.

The same page describes property taxes as a continuous lien on the real estate. That matters in a sale. A tax balance does not disappear because the house changes hands. The usual practice is for the closing attorney or title company to confirm what is owed and handle it from the seller's proceeds, but the pages I reviewed do not spell out that procedure, so ask your attorney how your closing will treat it.

I did not find an official state page that sets a proration formula for taxes between seller and buyer, so I will not give you a fixed rule or percentage. The contract of sale and the settlement statement normally lay out who pays which tax period. Ask the buyer's and seller's attorneys to show you the calculation line by line, and compare it to the tax bill dates above.

Delinquent taxes can collect interest and lead to a tax sale. The state's tax sale overview says interest on a delinquency can reach up to 8 percent on the first $1,500 and up to 18 percent above that, with a possible year-end penalty on larger balances. Two other answers explain those charges and tax sale certificates. Paying up before you list, or handling it at closing, avoids surprises.

The Division of Local Government Services says information on upcoming tax sales is available from the municipal tax collector, and that every municipality with delinquent taxes or municipal charges must hold at least one tax sale a year. Ask the tax collector for a current account statement that shows which installments are paid and what, if anything, is open, including any municipal charges. A clean statement makes the buyer's attorney's work easier.

Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can give an offer within 24 hours and close in 14 to 30 days or on the date you choose. Call 267-329-0084. If you owe back taxes, tell us and your closing attorney, since the payoff reduces what you receive. A listing with an agent is the other main route, and it still has to clear the same taxes.