What must occur before a seller is eligible for a tax refund?

For a seller to be eligible for a tax refund, a tax adjustment at closing must take place. This adjustment helps ensure that property taxes are apportioned correctly between the buyer and seller based on the time each occupies the property during the tax year. If, at closing, it is determined that the seller has overpaid property taxes for the period of ownership, they would be in line to receive a refund for that overpayment.

The completion of the final sale, transfer of title, and escrow closure are important steps in a real estate transaction but do not directly relate to the eligibility for a tax refund. It is the tax adjustment at closing that establishes the basis for any potential refund by accounting for the tax obligations incurred during the period of ownership. This adjustment is crucial for determining financial responsibilities and ensuring the seller receives any appropriate tax refunds accordingly.