Escrow & Title
Proration of property taxes at closing means:
AThe buyer and seller each pay their proportionate share of the tax year based on days of ownership✓ Correct
BAll property taxes are due immediately at closing
CThe lender pays the property taxes from escrow
DThe seller is responsible for all property taxes for the entire year of sale
Explanation
Property tax proration allocates the tax liability between the buyer and seller based on the number of days each party owns the property during the tax year. The method and direction of adjustment depend on whether taxes are paid in advance or arrears.
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