Property taxes are part of the closing adjustments between the buyer and seller in any real estate transaction. The closing adjustments are part of the fees billed when you sign your mortgage documents at your real estate lawyers office. In Alberta, property taxes for the full year are collected on June 30th of every year .
When you buy your home, your real estate lawyer will do the legwork to make sure all of the seller’s expenses are up-to-date, including their property taxes. If they are not, the seller will be required to pay them to the municipality. If the property taxes of the home you purchase were paid by the previous homeowner through a monthly Tax Instalment Program Plan (TIPP) through the city of Edmonton or it’s neighbouring municipalities, it is possible to assume the sellers TIPP payments for a property by submitting an application. Be sure to discuss property taxes while you are with your lawyer when you are signing your mortgage documents.
If you were to purchase the home between January 1- June 30th (the day you take possession is always the responsibility of the seller) the seller would credit you the portion of taxes related to the days they were in the home. If the closing date is between June 30th and December 31st, you would credit the seller for any prepaid taxes.
If you and are purchasing your home before taxes are due June 30th- be prepared that you will be responsible for paying the property taxes for the remainder of the year on June 30th for July 1-December 31st. This even is the case if your lender is is paying your taxes on your behalf. As you have just begun to contribute to your tax account, your lender will not upfront the taxes for the current year, however the money that the lender is setting aside will go toward your taxes towards the following season. Be aware that there may be an adjustment added to your tax account if there is not enough money in the account at tax season.