A property has annual property taxes of $3,600. The seller paid taxes through December 31, but the sale closes on October 1. How much does the seller owe the buyer as a proration?
Correct Answer
A) $900
The seller has prepaid for Oct-Dec (3 months). Monthly tax: $3,600 ÷ 12 = $300. The seller is owed $300 × 3 = $900 as a credit from the buyer.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Ownership Land Use Controls Question
Background Knowledge for Property Ownership Land Use Controls
Real World Application in Property Ownership Land Use Controls
Common Mistakes to Avoid on Property Ownership Land Use Controls Questions
Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Proration is the process of dividing expenses or income between the buyer and seller at the closing of a real estate transaction. This ensures each party pays or receives only their fair share based on the period of ownership.
More Property Ownership Land Use Controls Questions
The highest form of property ownership in the United States is:
Fee simple is all of the following EXCEPT
The largest estate or ownership in real prop- erty is
In real estate, the term improvements most nearly means
In a physical sense, real estate may be said to include everything EXCEPT
- → All of the following real estate types can be depreciated, except:
- → Which of these is a direct building cost?
- → A man died without a will and with no sur- viving relatives. His four-acre farm will
- → Items that are affixed as appurtenances to land are usually real property. Which of these items is NOT real property?
- → A man dies testate, leaving a wife and minor son. He leaves all of his property to his son. His wife claims her elective share under the Uniform Probate Code. How will the man’s property be distributed?
- → When a person dies testate, her real property will
- → The rights to the space above the ground within vertical planes are BEST described as
- → All of the following are soil conditions, except:
- → The maker of a negotiable instrument is able to defend against a holder in due course in the event of:
- → While appraising a single family residence (SFR), an appraiser observes cracks in the walls and floor. In response, the appraiser best recommends which of the following?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A man who makes a will is called
Next Question
A property owner has been doing car repairs on their driveway in violation of the conditions, covenants and restrictions (CC&Rs) of their subdivision. The homeowners’ association (HOA) files a lawsuit and receives a court order requiring the owner to stop. The court order is called a(n):