Escrow & Title
A Minnesota seller wants to close on June 30. Their property taxes for the year have not yet been billed. How will taxes typically be handled at closing?
ANo tax adjustment is made since bills haven't been issued
BTaxes are prorated based on the prior year's tax bill, credited to the buyer✓ Correct
CThe seller pays an estimated full year's tax to the county before closing
DThe buyer assumes full responsibility for all current year taxes
Explanation
When taxes haven't been billed yet, Minnesota closings typically prorate taxes based on the prior year's tax amount, with the seller crediting the buyer for the portion of the year the seller owned the property. This is an estimate that will be reconciled when the actual tax bill arrives. The credit appears as a debit to the seller and credit to the buyer on the closing statement.
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