Which answer most accurately states the Florida rule for property-tax prorations in a state where taxes are paid in arrears?
Correct Answer
C) Prepaid items are often credited back to the seller for the buyer's share after closing.
Prepaid items are often credited back to the seller for the buyer's share after closing. This follows Florida closing-proration practice; Florida property taxes paid in arrears; Pearson VUE Florida Sales Associate CIB.
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Previous Question
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?
Next Question
A property closes on March 15th. The annual property taxes of $2,400 have been paid by the seller for the entire year. Using a 365-day year and the day of closing belongs to the buyer, what is the proration amount the buyer owes the seller?