In a Florida closing, the seller prepaid the annual property taxes of $3,600 on January 1st. The property closes on September 10th. Using the 365-day method, what is the buyer's prorated share of the taxes that should be credited to the seller?
Correct Answer
A) $1,228.77
Correct: From September 10 to December 31 = 112 days remaining. $3,600 ÷ 365 days = $9.863 per day. 112 days × $9.863 = $1,228.77. Why not B: Incorrect calculation of remaining days or daily rate. Why not C: Error in daily rate calculation or day count. Why not D: Miscalculation of the proration period or daily amount.
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Previous Question
A Florida real estate transaction is scheduled to close on March 15th. The buyer's attorney discovers a cloud on the title that requires additional documentation from the seller. The seller's agent assures everyone the documents will be available by March 20th. What is the most appropriate action for the closing agent?
Next Question
During a Florida residential closing, the buyer notices that the closing disclosure shows a different interest rate than what was quoted in the loan estimate. The lender explains that market rates increased since the initial quote. What rights does the buyer have under TRID regulations?