Real Estate MathProrationsMEDIUM
Jon buys a property closing on March 1st. The seller prepaid annual taxes of $6,000. How much does Jon owe the seller?
Correct Answer
D) $5,000.00
Seller paid for full year. Jon owes for March-December (10 months). $6,000 ÷ 12 × 10 = $5,000
Answer Options
A
$1,000.00B
$3,000.00C
$4,000.00D
$5,000.00Video Explanation3 min
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Related Topics & Key Terms
Related Topics:
closing-statementsproration-calculationprepaid-expenses
Key Terms:
property tax prorationclosing statementprepaid taxesbuyer creditclosing date
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