David, a Connecticut real estate salesperson, is working with a buyer client who is under contract to purchase a home. The buyer asks David to explain how property taxes are handled at closing in Connecticut. Which of the following most accurately describes the standard Connecticut practice for prorating property taxes at closing?
Correct Answer
D) Property taxes are prorated between buyer and seller based on the closing date, with the seller responsible for the portion of the tax year before closing
Standard Connecticut closing practice prorates property taxes between buyer and seller based on the closing date. The seller is responsible for the portion of the tax period that falls before and including the closing date, and the buyer is responsible for the period after closing. This proration appears as either a credit to the buyer or a debit to the seller on the closing disclosure, depending on whether taxes have already been paid.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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A Connecticut assessor is determining the value of a commercial office building for property tax purposes. The building generates consistent annual net operating income. Which appraisal approach is most appropriate and most commonly used by Connecticut assessors for income-producing commercial property?
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