Escrow & Title
In an Alaska real estate closing, proration of property taxes means:
AThe buyer pays all property taxes for the year
BProperty taxes are divided proportionally between buyer and seller based on the closing date✓ Correct
CProperty taxes are waived for new construction
DThe lender advances property taxes and adds them to the mortgage
Explanation
Proration divides property taxes (and other ongoing expenses) between buyer and seller based on how many days each party owned the property during the tax period.
Related Alaska Escrow & Title Questions
- An Alaska real estate closing in which the buyer and seller are in different locations is most commonly facilitated by:
- The purpose of a 'satisfaction of mortgage' (or deed of reconveyance in a trust deed state) is to:
- The chain of title is the:
- In Alaska, a 'grant deed' conveys:
- Under Alaska recording statutes, which of the following instruments MUST be recorded to be enforceable against third parties?
- A title insurance policy that protects the lender's interest is called a:
- In Alaska, a 'quiet title action' is a legal proceeding used to:
- A title search in Alaska examines the public records to:
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