Monthly rent of $2,750 has been collected in advance for a 30-day month. Closing occurs on the 15th day of the month, and the seller owns the day of closing. What rent amount is credited to the seller?
Correct Answer
A) $1,375
Per diem rent = $2,750 ÷ 30 = $91.67. Seller owns 15 days including the day of closing, so the seller's share is $91.67 × 15 = $1,375.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.
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.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
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