Escrow & Title

A prorated real estate tax at closing in Alaska benefits the buyer when:

ATaxes are current and the seller has already paid for the full year✓ Correct
BTaxes are paid in arrears and are owed for the portion of the year the seller owned the property
CThe buyer is exempt from property taxes
DThe municipality rebates a portion of the tax at closing

Explanation

When taxes are paid in advance (prepaid) and the seller has paid for the full year, the buyer credits the seller for the buyer's portion of the year. When taxes are paid in arrears, the seller credits the buyer for the taxes owed through closing.

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