Finance
A Minnesota buyer closes on a home on March 15. The seller has already paid the full year's property taxes. At closing, who pays what?
AThe buyer pays the seller nothing since the seller prepaid taxes
BThe buyer credits the seller for taxes from March 15 through December 31✓ Correct
CThe seller receives a full year's tax refund from the county
DThe buyer pays the county directly for their share
Explanation
When the seller has prepaid property taxes, the buyer must reimburse (credit) the seller for the portion covering the buyer's ownership period. From March 15 through December 31 = approximately 9.5 months. The buyer credits the seller for this period at closing. Minnesota property tax proration is a standard closing calculation.
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