{"ok":true,"canonical_url":"https://dealroom.so/glossary/prorated-property-tax","api_url":"https://dealroom.so/api/public/glossary/prorated-property-tax","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"prorated-property-tax","term":"Prorated Property Tax","group":"Doing the deal","definition":"At closing, property taxes are divided between the buyer and seller based on the number of days each party owned the property in the current tax period. This ensures each pays their fair share.","what_it_means":"Property taxes are typically paid in arrears or advance for a specific period. At closing, the seller will be responsible for taxes up to the closing date, and you, the buyer, for the period after. This proration is a common closing adjustment handled by the escrow agent or attorney.","url":"https://dealroom.so/glossary/prorated-property-tax","official_sources":[],"related":[{"slug":"property-tax","term":"Property Tax","url":"https://dealroom.so/glossary/property-tax"},{"slug":"escrow-holdback","term":"Escrow / holdback","url":"https://dealroom.so/glossary/escrow-holdback"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Do unfiled tax returns or overdue taxes prevent SBA approval?","url":"https://dealroom.so/sba-7a/questions/do-unfiled-tax-returns-or-overdue-taxes-prevent-sba-approval"},{"question":"What if the business I am buying has unfiled tax returns or overdue payroll taxes?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-am-buying-has-unfiled-tax-returns-or-overdue-payroll-taxes"},{"question":"What if the business I'm buying has unfiled tax returns or overdue payroll taxes?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-unfiled-tax-returns-or-overdue-payroll-taxes"},{"question":"If I have unfiled tax returns or overdue taxes, will that prevent SBA 7(a) loan approval?","url":"https://dealroom.so/sba-loans/basics/if-i-have-unfiled-tax-returns-or-overdue-taxes-will-that-prevent-sba-7-a-loan-approval"},{"question":"What if the business I'm acquiring has pending tax audits or unresolved tax issues?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-pending-tax-audits-or-unresolved-tax-issues"},{"question":"Can an SBA 7(a) loan cover the property taxes due at closing for the acquired real estate?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-property-taxes-due-at-closing-for-the-acquired-real-estate"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Prorated Property Tax","url":"https://dealroom.so/glossary/prorated-property-tax","source_type":"DealRoom Data"}}