Escrow & Title

In a Hawaii real estate closing, proration of property taxes means:

AA. The county reassesses the property at closing
BB. The taxes are divided between buyer and seller based on the portion of the tax year each owns the property✓ Correct
CC. The buyer is responsible for all taxes from the date of purchase forward
DD. Property taxes are not addressed at closing

Explanation

Prorations divide ongoing costs like property taxes between buyer and seller based on the closing date, ensuring each party pays only for the portion of the year they owned the property.

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