Escrow & Title

A Connecticut property closes on March 15th. The annual property taxes of $6,000 are paid in full by the seller for the calendar year. How is this prorated at closing?

AThe buyer owes the seller a credit for taxes from March 15 through December 31✓ Correct
BNo proration is needed since the seller already paid
CThe seller receives a refund from the town
DThe buyer pays half the annual taxes

Explanation

Since the seller prepaid the full year's taxes but is only the owner through March 15, the buyer owes the seller a credit for taxes from March 15 through December 31 (approximately 9.5 months). This is a buyer debit / seller credit at closing.

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