Closing - Taxes

If the Realtor makes a mistake on the estimated taxes due from the seller at closing. Is the Realtor liable?

[brett]

Normally, a sales associate prepares an estimate of property taxes that will be prorated between the seller and the buyer at closing. Three things may make the actual tax proration greater or less than the estimate:

1. The sales associate must make the estimate based on the previous year's taxes. That figure may change when the tax bill comes out in October.
2. The sales associate usually must estimate when the transaction will close, a date that can change based on the needs of the parties. If the closing date is later than used when the estimate is made, the tax proration charged to the seller will be greater.
3. Negligence on the part of the licensee. If the estimate was a wild guess without any foundation for making a valid estimate, the licensee could be liable.