At settlement in Asheville, the closing attorney uses a 365-day calendar-year proration and charges the seller with 304 days of the year's real property taxes under Form 2-T. If the annual real property tax bill is $5,110.25, what is the seller's prorated share?
Correct Answer
D) $4,256.21
Use the stated North Carolina formula or contract assumption: $5,110.25 × (304 ÷ 365) = $4,256.21 seller share; buyer share = $5,110.25 − $4,256.21 = $854.04. That calculation produces the correct amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.
Marketable title is title that is free from reasonable doubt as to who the owner is and free from liens, encumbrances, or defects that would cause a reasonable buyer to hesitate before purchasing. It is also known as merchantable title.
Probate is the legal process by which a deceased person's will is validated by the court and their estate is administered, including the transfer of real property to the named beneficiaries or heirs.
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