Escrow & TitleIntermediateArizona Exam
In Arizona, property taxes are prorated based on the fiscal year running from:
AJanuary 1 to December 31
BJuly 1 to June 30Correct
COctober 1 to September 30
DApril 1 to March 31
Why July 1 to June 30 Is Correct
Answer B: July 1 to June 30
Arizona's property tax fiscal year runs from July 1 to June 30. Property taxes are typically prorated at closing based on this fiscal year, with taxes prorated to the date of closing.
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.
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Key Terms to Know
Proration
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).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
Math Concepts
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