At settlement in Charlotte, the closing attorney uses a 365-day calendar-year proration and charges the seller with 90 days of the year's real property taxes under Form 2-T. If the annual real property tax bill is $4,380.00, what is the buyer's prorated share?
Correct Answer
B) $3,300.00
Use the stated North Carolina formula or contract assumption: $4,380.00 × (90 ÷ 365) = $1,080.00 seller share; buyer share = $4,380.00 − $1,080.00 = $3,300.00. That calculation produces the correct amount.
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Related Concepts
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
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.
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