Escrow & Title
Proration of property taxes at a Michigan closing means:
AThe buyer pays all taxes for the year of closing
BTaxes are divided between buyer and seller based on each party's ownership period during the tax year✓ Correct
CThe title company pays all back taxes
DProperty taxes are forgiven for the year of sale
Explanation
Property tax proration at closing divides the annual tax obligation between buyer and seller based on how many days each owned the property during the tax year. Michigan taxes are paid in arrears, so this is a common closing adjustment.
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