Glossary · Doing the deal
In short
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.
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.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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