What is the responsibility of the buyer if the seller has already paid taxes for the year upon closing?

In a real estate transaction, when the seller has paid property taxes for the entire year before the closing date, it becomes the buyer's responsibility to reimburse the seller for the prorated amount of taxes that applies to the time period after the closing. This ensures that the seller is compensated for the portion of the tax year they have already covered, while the buyer assumes the responsibility for taxes going forward.

Typically, property taxes are calculated on an annual basis, and because real estate transactions often occur at different times within a tax year, a proration or adjustment is usually made at the closing. Thus, the reimbursement reflects the fact that the buyer will benefit from the seller's advance payment for the portion of the year they will own the property.

The other options do not appropriately reflect the standard practice in real estate transactions regarding tax payments and responsibilities.