Escrow & Title
Arkansas property taxes are paid in arrears. At closing on July 1, how should the current year's property taxes be prorated?
AThe seller credits the buyer for January 1 through June 30 (seller's days of ownership)✓ Correct
BThe buyer pays the full year's taxes at closing
CNo proration is needed since taxes are not yet due
DThe seller pays the full year's taxes before closing
Explanation
Since Arkansas taxes are paid in arrears, the seller owes taxes for the days they owned the property (Jan 1–Jun 30 = 181 days). The seller credits the buyer that amount at closing so the buyer can pay the full year's tax bill when due.
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