Escrow & Title

In Iowa, property taxes are paid in arrears, meaning:

AProperty taxes are paid before the tax year begins
BProperty taxes for a given year are paid in the following year✓ Correct
CProperty taxes are deducted from the mortgage automatically
DProperty taxes are billed quarterly by the state

Explanation

In Iowa, property taxes are paid in arrears—taxes for a given fiscal year are paid the following year. At closing, the seller typically credits the buyer for accrued but unpaid taxes.

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