Escrow & Title

In Hawaii, what does 'proration' of property taxes at closing mean for a buyer?

AA. The buyer pays all taxes from the date of purchase through year-end
BB. Taxes are allocated so each party pays only for their period of ownership during the tax year✓ Correct
CC. The buyer is responsible for all outstanding taxes the seller owes
DD. Property taxes are suspended during the escrow period

Explanation

Prorations ensure fair allocation of periodic costs. The seller pays their portion of annual taxes and the buyer pays from closing date forward, credited/debited at closing.

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