Escrow & Title

In North Dakota, 'proration' of property taxes at closing is typically based on:

AThe previous year's tax bill and the closing date
BThe current year's estimated tax based on available data, with adjustments after the final bill if needed✓ Correct
CThe county assessor's estimate only
DOnly the lender's escrow estimate

Explanation

When current year tax bills are not yet available, prorations are typically based on the previous year's taxes adjusted for known changes, or on an estimated amount. The parties may agree to re-prorate after the actual tax bill is received if the proration was based on estimates.

Related North Dakota Escrow & Title Questions

Practice More North Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free North Dakota Quiz →