Final answer:
In real estate transactions, it is common for the buyer to receive a credit for unpaid property taxes at closing settlement, since these costs are typically pro-rated based on the date of closing.
Step-by-step explanation:
In a closing settlement, c) the buyer is credited for unpaid property taxes is usually correct. When purchasing a home, escrow accounts are commonly used to manage funds for recurring expenses such as property taxes and home insurance. The responsibility for these costs is pro-rated based on the closing date. The buyer will, therefore, often receive a credit for property taxes that have not yet been paid but are due for the period before they take ownership. The seller, on the other hand, is typically responsible for the property taxes up until the date of sale and may have paid some of these taxes in advance.
Escrow services play a vital role in home purchases by handling the transfer of funds for recurring expenses, providing a seamless transaction process for all involved parties, ensuring that both insurance and taxes are paid on time without requiring separate payments from the homeowner.