On settlement day, new construction buyers will pay taxes to reimburse what the seller/builder originally paid for the ground only. When the deed is recorded following settlement day, the Board of Assessments will assess for the property’s new value, which now includes the fully constructed house. The Tax Collector will then issue a one-time bill to the buyer based on the increase in value due to the newly constructed home.
Most buyers will receive this bill approximately 8-12 weeks after settlement day. If you are a real estate professional working with new construction clients, please be sure to ensure that your client is aware of this prior to settlement day so that they may budget accordingly.
Please contact your Security Abstract title agent or titleservices@securityabstract.com with any questions that you may have.
Please Note: This information applies to new construction buyers only.