Paragraph 18 of the standard residential Contract of Sale states that the parties shall apportion certain items such as fuel, taxes, water consumption, rents and other items as of the closing date. For example, if the Seller has pre-paid the taxes then the Seller would receive a credit for the portion of the payment applied to the period between the Closing Date and the end of the tax period. If the Seller purchased heating oil, the Purchaser would need to reimburse the Seller for the amount of fuel left in the tank. If there is a final water meter reading, the Seller would pay the final bill and the Purchaser would open a new account.
The Contract states that “any errors or omissions in computing apportionments or other adjustments at Closing shall be corrected within a reasonable time following Closing.”
*Thank you for taking the time to read this article. This article is part of our “From Contract to Closing; Demystifying NY Residential Real Estate” Series. Other aspects of residential real estate transactions in New York are discussed in other Parts of this series.
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