If closing prior to the end of the year, is it imperative that the taxes be paid for the entire year?

In Texas, property taxes for the current year are due and payable on October 1, and are delinquent on February 1 of the following year. If you close your transaction on or after October 1, and want the policy to insure that taxes for the current year are paid, then the title company must collect the taxes and pay them to the different taxing authorities. Almost all lenders will require taxes to be paid at closing if the closing occurs after October 1. Regardless of whether taxes are paid, they will be prorated through the date of the closing, with each party being charged for taxes based on the portion of the year for which they own the property in question.