Real Estate MathProrationsMEDIUM
James buys a property closing June 1st. The seller prepaid annual taxes of $3,000. How much does James owe the seller?
Correct Answer
C) $1,750.00
James owes for June-December (7 months). $3,000 ÷ 12 × 7 = $1,750
Answer Options
A
$250.00B
$750.00C
$1,750.00D
$3,000.00Video Explanation3 min
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Related Topics & Key Terms
Related Topics:
proration-calculationclosing-statementsproperty-tax-assessment
Key Terms:
tax prorationclosing costsprepaid taxesbuyer reimbursementsettlement statement
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