I recently did a transaction with a lovely couple. It was not a perfect ride from beginning to end, but we found our way and they did end up with the perfect home for them. I was so pleased as they did have their first deal crumble. As the saying goes, sometimes you have to kiss a lot of frogs.

That said, there was some confusion after moving in about property taxes. We knew how much they were and that the seller is responsible for them until the possession day, that the lawyer makes those adjustments for closing day. But just WHO takes the reins and sets them up? Sometimes the lawyer does, sometimes the bank has a hand in it, but ultimately you need to be sure they are coming out. Everyone says something about taxes: taxes have been adjusted for or we are ensuring adequate amounts are coming out of your account for taxes, but are they transferred into your name at the City?

Since dealing with this issue, I have also learned the City will continue to take taxes out of your account until YOU terminate. They can accept the title transfer, but they cannot turn off the tap to withdrawing taxes until you say stop. (Yes, it is the Seinfeld episode: they can take the reservation, they just can’t keep it). The City will continue to withdraw property taxes from your account AND the new owners account until you tell them to stop and give you back your money.
 

Taxes are due once a year on June 30 every year unless you get set up on a payment plan. The payment plan is a monthly withdrawal. In Calgary, it’s called TIPP (Tax Installment Payment Plan). You can get set up online, terminate online and ask questions. If in doubt, you can easily call 311. Web link: http://www.calgary.ca/CA/fs/Pages/Property-Tax/Tax-Installment-Payment-Plan-TIPP/Tax-Installment-Payment-Plan-(TIPP).aspx

I have altered my buyers and sellers guides to include the details for property taxes. You don’t want to get stuck with a government penalty.
 

We are always learning—YOU are keeping me on my toes.

Thank you!