What items are typically credited to the seller at closing?

At closing, accrued property tax amounts are typically credited to the seller, which reflects amounts due for property taxes that the seller is responsible for up to the closing date. This means that during the settlement, the buyer is often credited for the portion of property taxes that covers the duration of ownership that the buyer will have. Essentially, since the seller has owned the property and incurred the tax expense while it was under their ownership, they will receive a credit for those taxes to ensure the expenses are fairly allocated.

Other items mentioned, such as utilities used by the buyer, repair costs for damages, and home warranty costs, are typically assessed differently in a real estate transaction. Utilities are usually considered the buyer's responsibility once the closing occurs. Repair costs for damages are often negotiations separate from closing credits and are managed according to the purchase agreement. Home warranty costs may also be negotiated as a part of the purchase but are not standard credits at closing to the seller. Therefore, accrued property tax amounts accurately represent what is typically credited to the seller at closing.