Tax prorations, license fees
Answers to real estate questions as appearing
in the Houston Chronicle
By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
Dear George: As sellers, we advised the escrow agent prior to closing that we were taking our tax exemptions with us, and the buyers told us they were going to file for their exemptions immediately. The escrow agent calculated the taxes on the settlement statement using the figures provided by the tax office, which were with our exemptions. When the buyers received their tax bill, it was more than double what we had previously paid. Now the buyers want us to pay the difference. We contend the agent was responsible for calculating the accuracy of the taxes. Fully aware of the fact in advance, we also feel it was her responsibility to have an acknowledgement prepared for buyers' and sellers' signatures. The escrow agent and the title company refuse to accept responsibility. Can you help?
Answer: Neither the title company nor the escrow agent accepts responsibility because the title company usually provides an agreement at closing where the sellers and buyers agree that whichever party benefits from the prorations at closing will pay the other party the amount of any discrepancies that may exist in the settlement statement prorations. In other words, if the new buyers receive a tax bill from the taxing authorities that reflects a discrepancy between the amounts prorated on the closing statement at closing in favor of the previous owners, the previous owners have agreed in writing to pay the difference to the new owners. The title company is out of it, the escrow agent is out of it, and any real estate agents are out of it. It is an agreement between the you and the buyers. The only statement that a title company can use to prorate is an existing tax bill. That tax bill may have exemptions to which the new owners are not entitled, or there may be other discrepancies. The letter agreement between the owners is the only way to facilitate the closing in a timely manner.
Dear George: If I get my Texas real estate salesperson's license, how much will it cost to renew it each year?
Answer: The cost to renew a real estate salesperson's license as well as a wealth of information about licensure and renewals is posted on the Texas Real Estate Commission's Web site.
E-mail your question to "Ask George & Chuck" or fax it to 281/596-7591. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
George Stephens, CRB, is the broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas and a real estate broker in Texas, Georgia, and Massachusetts.
Charles J. Jacobus, JD, is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate and Houston Community College, and is an adjunct professor at the University of Houston Law Center.
George and Chuck are co-authors of Texas
Real Estate Brokerage and Law of Agency published by Thomson Publishing.
