Escrow & Title
At a North Dakota closing, 'prepaid items' typically refer to:
AClosing costs the buyer prepaid months ago
BHomeowner's insurance premiums, prepaid interest, and property tax escrows collected at closing✓ Correct
CItems the seller prepaid that the buyer must reimburse
DLegal fees paid before the closing date
Explanation
Prepaid items (also called prepaids) at closing include prepaid homeowner's insurance, prepaid mortgage interest (from closing to month-end), and initial escrow deposits for taxes and insurance. They represent amounts collected to cover near-term obligations.
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