It’s the happiest season of all here in Florida! No, not the holiday season: property tax season! Ok, maybe not, but most, if not all, Florida counties have indeed released property tax bills for 2025 in the last few weeks. Some Buyers who recently purchased a property this year might be unpleasantly surprised when they see that the actual tax bill is substantially different from the prior year’s tax bill, which was likely used to calculate tax prorations at the time of closing.
The FAR/Bar contract (the “Contract”) provides that if closing occurs on a date on which the current year’s assessment is not available, then “taxes will be prorated on the prior year’s tax bill.” So, for much of the year, Closing Agents will use the prior year’s tax bill to prorate property taxes. The bad news can be that when the current year’s tax bill comes out at this time of year, Buyers often realize the prior year’s tax bill used to project the current year was much less than the actual tax bill they ended up receiving for the year. This can be especially true during years when property values rise substantially from the year before, or when the property was vacant land the year prior, and then a home was constructed on said property. The good news? The Contract does provide a solution for Buyers who find themselves in this situation.
Seeking a Property Tax Re-proration from the Seller
Section 18(K) of the Contract provides that “a tax proration based on an estimate shall, at either party’s request, be readjusted upon receipt of the current year’s tax bill.” In other words, either party can seek a re-proration from the other party upon receipt of the current tax bill. It’s at this point that you might be asking, “How would someone go about doing that?” Unfortunately, the above quote is the extent to which the Contract provides any answers as to this situation.
The Contract does not provide a mechanism for either party to utilize to actually seek a re-proration. So, in the case of a Buyer seeking a re-proration, the Buyer or Buyer’s representative will need to demand a re-proration from the Seller directly. This can be done by citing Section 18(K) of the Contract, providing both the prior year’s and the current year’s tax bills, and noting the difference in prorations if the accurate current year’s tax bill had been used at closing
What if the Seller refuses?
If the Seller (or Buyer, as the case may be) refuses, then Buyer may pursue her legal remedies, which may include bringing the appropriate legal action in order to enforce Buyer’s rights pursuant to the Contract. We encourage any party that finds themselves in this situation to consult legal counsel to discuss their options and the best strategy.
If you have any questions about tax re-prorations or any other real estate questions, please do not hesitate to reach out to your trusted local real estate attorney.
