Annual real estate taxes are $6,000 and are unpaid at closing. Using a 360-day year and 30-day months, the closing is on 7/19, with the seller owning the day of closing excluded. What amount should be charged to the seller for taxes?
Correct Answer
B) $3,300
Per diem tax = $6,000 ÷ 360 = $16.67. Seller days = 198. Seller's share = $16.67 × 198 = $3,300.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
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