Escrow & Title
At a Minnesota real estate closing, proration of property taxes means:
AAll taxes are paid by the buyer
BTaxes are divided between buyer and seller based on their respective periods of ownership during the tax year✓ Correct
CTaxes are waived for the year of sale
DThe lender pays all taxes at closing
Explanation
Tax proration allocates property taxes between buyer and seller based on the number of days each owned the property during the tax year. In Minnesota, taxes are typically paid in arrears, requiring careful proration.
Related Minnesota Escrow & Title Questions
- A quitclaim deed in Minnesota:
- At a Minnesota closing, the buyer's lender requires a 'final walk-through' before disbursing funds. The purpose of this walk-through is to:
- A Minnesota homebuyer receives a Loan Estimate (LE) from their lender three days after submitting their loan application. The Closing Disclosure shows higher fees than the LE. Which fees are protected from increase (cannot change at all)?
- A Minnesota buyer is purchasing a home in Hennepin County. The deed will be recorded with which office?
- Which of the following liens has the highest priority in Minnesota?
- At a Minnesota closing, the parties sign a 'settlement statement' showing all financial aspects of the transaction. For residential transactions, what federal form is required for most mortgage loan closings?
- At a Minnesota closing, a Closing Disclosure shows the buyer's cash to close. Which items are NOT typically included in the buyer's cash to close?
- A Minnesota property is being sold in a 'short sale' where the lender must approve the sale price (which is less than the mortgage balance). The lender's approval is required because:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →