Information Every buyer Should Know

      Municipal Taxes and Liens

Taxes are normally paid twice a year six months in advance. Upon closing, be prepared to pay six months taxes in advance either by reimbursing the seller for prepaid taxes or by kicking off a tax account with your financial institution if it will be paying the taxes on your behalf. In either event your lawyer will complete these adjustments.

On each transaction your lawyer will obtain a Tax Certificate from the Municipality to ensure that the Property taxes are fully paid up to date. If the taxes are in arrears, an adjustment will be made with the seller at the time of closing to make sure that the seller pays all taxes which are his responsibility. They will provide you with a copy of this Certificate in their report.

Each Municipality in the Province of N.S. has the right to file liens against a homeowners property to pay for Municipal Improvements such as paving, sidewalks, and sewer charges. These liens are commonly referred to as "betterment charges". If these betterment charges are not paid, the municipality has the right to force the sale of the house to recover the unpaid debt. The tax certificate obtained from the municipality will indicate whether or not there are betterment charges against the property. If there are charges against the property, and you have not agreed to take over the cost of the charges as part of your contract, the seller will be required to pay off the charges before the property is transferred to the buyer.

We advise you to call the Municipal Tax Office a few months after the closing to confirm that the tax account for your property has been switched into your name and that tax bills will be forwarded to your proper mailing address. Failure to receive your tax bill will not prevent you from being charged interest on your account if it is not paid on time.

If your taxes are being collected by your mortgage company, your lawyer would advise you to call your Municipal Tax Office twice a year to make sure your mortgage company has paid your interim and your final bill.

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