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?
Correct Answer
B) $480
Florida property taxes are commonly treated as paid in arrears, so the seller is debited for the seller's accrued share through the day before a buyer-day closing. Daily tax is $8; multiplied by 60 days, the seller debit is $480.
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Previous Question
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?
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A Florida closing occurs on June 15. Use a 360-day year, 30-day months, assume property taxes are paid in arrears, and assign the day of closing to the seller. If estimated annual property taxes are $3,240, what seller debit for taxes is used?