A tax proration is an allocation between buyer and seller; it is not proof that the underlying tax account is paid. A sound review compares the contract's allocation rule, the county account, the latest bill, and the settlement statement.
Evidence hierarchy
| Evidence | Question |
|---|---|
| County tax account | What was billed, paid, or delinquent? |
| Contract clause | Which period and method are allocated? |
| Settlement statement | What amount was credited or charged? |
| Escrow record | Was a lender-held amount separately handled? |
The CFPB notes that property taxes can appear in escrow and that unpaid taxes can create penalties or a tax lien in its escrow guidance. That guidance does not choose the parties' proration method.
A useful comparison
Calculate the stated proration using the contract's day-count convention, then compare it with the settlement statement. Preserve whether the bill was known, estimated, or reassessed. An amount difference is an exception for investigation, not evidence that one party intentionally misstated taxes.
For a research dataset, report the percentage of files with a county-account match and the percentage with a documented estimate. Also report the day-count convention and the number of calendar days allocated to each party. Do not present those results as a national tax-error rate unless the sample is representative and the tax jurisdictions are disclosed.
Primary source: CFPB escrow account guidance.
**Professional disclaimer:** Informational only; not tax, legal, escrow, or accounting advice.