Q. When are the taxes due on my home?

A. Taxes for the first half of the current year, January 1 through June 30:

• Due on: October 1 of current year
• Delinquent on: November 1 current year

  Taxes for the Second half of the current year, July 1 through December 31:

• Due on: March 1 of following year
• Delinquent on: May 1 of following year

Q. Who pays closing costs?

A. The Buyer generally will pay:

• Lenders title policy premium, if new loan
• Escrow fee, one half (except Seller pays all on VA)
• document preparation, if applicable
• Notary fees, if applicable
• Recording charges for all documents in Buyers' names
• Homeowners Association transfer fee, one half
• Two months Homeowners Association fee
• All new loan charges
• Interest on new loan from date of funding to 30 days prior to first payment
• Assumption/change of records fees for takeover of existing loan
• Beneficiary statement fee for assumption of existing loan
• Home warranty premium per contract
• Hazard insurance premium for first year
• All prepaid items, such as interest, or funds for an escrow account
• Courier fees if applicable
• Professional home inspection

  The Seller Generally will pay:

• Owner's title insurance premium
• Realtor's commission
• Escrow fee, one half (except Seller pays all on VA)
• Any loan fees required by Buyer's lender, i.e., FHA and VA
• All loans in Seller's name
• Interest accrued on loan being paid off, statement fees, recoveyance fees, prepayment penalties
• Termite inspection and termite repairs, per contract
• Home warranty premium per contract
• Homeowners Association transfer fee, one half
• Homeowners Association Disclosure Fee
• Any unpaid Homeowners Association dues
• Any judgments, tax liens, etc., against Seller
• Recording charges to clear all documents of record against Seller
• Property taxes: prorated to the date the title is transferred plus any delinquent taxes
• Any bonds or assessments per contract
• Courier fee if applicable
• Septic fees per contract
• Any repairs per contract

Q. How should I take title in Arizona?

A. Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise. Title may be held as "Sole and Separate." If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporations; a limited liability company; a partnership (general or limited), or a trust. Each method of taking title has certain significant legal and tax consequences. Therefore, you are encouraged to obtain advice from an attorney or other qualified professional.

Community Property:

• Requires a valid marriage between two persons.
• Each spouse holds an undivided one-half interest in the estate.
• One souse cannot partition the property by selling his or her interest.
• Requires signatures of both spouses to convey or encumber
• Each spouse can devise (will) one-half of the community property.
• Upon death the estate of the decedent must be "cleared" through probate, affidavit or adjudication.
• Both halves of the community property are entitled to a "stepped up" tax basis as of the date of death.

Joint Tenancy with Right of Survivorship:

• Parties need not be married; may be more than two joint tenants
• Each joint tenant holds an equal and undivided interest in the estate, unity of interest.
• One joint tenant can partition the property by selling his or her joint interest.
• Requires signatures of all joint tenants to convey or encumber the whole.
• Estate passes to surviving joint tenants outside of probate.
• No court action required to "clear" title upon the death of joint tenant(s).
• Deceased tenant's share is entitled to a "stepped up" tax basis as of the date of death.

Community Property with Right of Survivorship:

• Requires a valid marriage between two persons.
• Each spouse holds an undivided one-half interest in the estate.
• One spouse cannot partition the property by selling his or her interest.
• Requires signatures of both spouses to convey or encumber.
• Estate passes to the surviving spouse outside of probate.
• No court action required to "clear" title upon the first death.
• Both halves of the community property are entitled to a "stepped up" tax basis as of the date of death.

Tenancy in Common:

• Parties need not be married; may be more than two tenants in common.
• Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate.
• Each tenant's share can be conveyed, mortgaged or devised to a third party.
• Requires signatures of all tenants to convey or encumber the whole.
• Upon death the tenant's proportionate share passes to his or her heirs by will of intestacy.
• Upon death the estate of the decedent must be "cleared" through probate, affidavit or adjudication.
• Each share has its own tax basis.

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