If the Purchaser pays the taxes and insurance premiums, is he/she required to let the Seller know?
The Real Estate Contract should address the proper procedure for notifying the Seller of taxes and insurance paid. Most standard forms require the Purchaser to have the property assessed in his/her name with the county assessor’s office to guarantee receipt of future tax billings. Upon request by the Seller, the Purchaser will provide proof of taxes paid. Most contracts further require the Purchaser to automatically provide proof to the Seller that insurance is in force prior to the expiration date of each existing policy. Purchasers and Sellers should familiarize themselves with the requirements for tax and insurance payments and notifications, as outlined in their Real Estate Contract.