A Florida commercial property closing involves a triple-net lease where the tenant pays all property expenses. The lease requires the tenant to pay property taxes directly to the tax collector. At closing, the seller's attorney wants to prorate the taxes between buyer and seller. What should the closing agent do?
Correct Answer
D) Prorate based on the lease terms and credit the appropriate party
Correct: In triple-net leases, tax obligations follow the lease terms, and proration should reflect who is responsible during each ownership period according to the lease. Why not A: Normal proration ignores the lease obligations that may affect the actual tax burden. Why not B: Holding funds in escrow is unnecessary when lease terms clearly define responsibilities. Why not C: Even though the tenant pays, the ownership change may affect the landlord's obligations under the lease.
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In Florida real estate transactions, what is the primary purpose of the closing disclosure (CD) that buyers must receive?
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A Florida closing occurs on March 1. Use a 360-day year, 30-day months, assume property taxes are paid in arrears, and assign the day of closing to the buyer. If the annual property tax estimate is $2,880, what seller debit for taxes should appear on the closing statement?