At settlement in New Bern, the closing attorney uses a 365-day calendar-year proration and charges the seller with 151 days of the year's real property taxes under Form 2-T. If the annual real property tax bill is $4,015.75, what is the buyer's prorated share?
Correct Answer
C) $2,354.44
Use the stated North Carolina formula or contract assumption: $4,015.75 × (151 ÷ 365) = $1,661.31 seller share; buyer share = $4,015.75 − $1,661.31 = $2,354.44. That calculation produces the correct amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Adverse possession is a legal doctrine that allows a person to claim ownership of land by occupying it continuously for a statutory period under specific conditions, without the true owner's permission.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
The chain of title is the sequential history of all transfers of ownership for a specific property, from the original source (typically a government patent or grant) to the present owner. An unbroken chain is essential for marketable title.
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