At settlement in Chapel Hill, the closing attorney uses a 365-day calendar-year proration and charges the seller with 181 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 seller's prorated share?
Correct Answer
A) $1,991.37
Use the stated North Carolina formula or contract assumption: $4,015.75 × (181 ÷ 365) = $1,991.37 seller share; buyer share = $4,015.75 − $1,991.37 = $2,024.38. That calculation produces the correct amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Constructive notice is the legal presumption that a person has knowledge of information that is available through public records or visible inspection of the property, regardless of whether they actually knew about it.
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
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