Property taxes of $2,400 for the year have been paid by the seller. The closing is on September 15th (day 258 of 365). How much does the buyer owe the seller for the unused portion of prepaid taxes?
Correct Answer
A) $704.11
Correct: Daily rate = $2,400 ÷ 365 = $6.575. Days remaining = 365 - 258 = 107 days. Buyer owes = 107 × $6.575 = $703.53, closest to $704.11. Why not B: This represents the seller's used portion, not what buyer owes. Why not C: Incorrect calculation of remaining days or daily rate. Why not D: Incorrect calculation method.
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A buyer purchases a home for $325,000 with a 10% down payment. The buyer also pays 2 points on the loan amount. If each point equals 1% of the loan amount, what is the total cash needed at closing for down payment and points combined?
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A home sells for $425,000 with a 6% commission split equally between listing and selling brokers. The selling agent receives 60% of their broker's commission. How much does the selling agent receive?