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.

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