Proration of property taxes at closing means:
Why Taxes are divided between buyer and seller based on each party's period of ownership Is Correct
Answer C: Taxes are divided between buyer and seller based on each party's period of ownership
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
People Also Study
Related Alabama Questions
- Annual property taxes in Alabama are $2,400. Closing is on March 31. The seller owes taxes for January 1 through March 31 (90 days). How much does the seller owe at closing?Real Estate Math
- Proration of real estate taxes at closing means:Escrow & Title
- Annual property taxes are $3,600. The closing is on September 30 (day 273 of 365). If taxes are paid in arrears, how much does the seller owe in prorated taxes?Real Estate Math
- In Alabama, which party typically selects the closing attorney?Escrow & Title
- Proration at closing refers to:Escrow & Title
- The Closing Disclosure (CD) must be provided to the buyer at least how many business days before closing?Escrow & Title
Key Terms to Know
The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →