A Florida closing occurs on August 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 annual taxes are estimated at $3,240, what buyer credit corresponds to the seller's accrued tax debit?
Correct Answer
A) $1,350
For taxes paid in arrears, the seller is debited for accrued taxes up to closing and the buyer receives the matching credit on the closing statement. The amount is $1,890.
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Previous Question
A Florida closing occurs on February 1 in a nonleap year. Use a 365-day year, assume taxes are paid in arrears, and assign the day of closing to the buyer. If the annual tax estimate is $2,880, what is the seller's tax debit?
Next Question
Which answer most accurately states the Florida rule for property-tax prorations in a state where taxes are paid in arrears?