How are taxes and association dues prorated?
Most taxes and association dues are paid in arrears, which means that you have been living in the house and not yet paid the bill for part of that time. For example, if the real estate taxes are due December 5th, and you are closing on November 5th, then you will owe the buyer for the period from July 1 (the first day of the tax period) through November 4 (the buyer is deemed the owner the day of closing), and at closing the settlement agent debit your funds and credit it to the buyer for the pro-rated amount.

Posted By: Brian D. Lytle, Esq. on Sunday, February 06, 2011