A property has annual property taxes of $3,600. The seller paid taxes through December 31, but the sale closes on October 1. How much does the seller owe the buyer as a proration?
Question & Answer
Review the question and all answer choices
$900
$2,700
$0
$300
Why is this correct?
The seller has prepaid for Oct-Dec (3 months). Monthly tax: $3,600 ÷ 12 = $300. The seller is owed $300 × 3 = $900 as a credit from the buyer.
Continue Learning
Explore this topic in different formats
More Real Estate Math Videos
Continue learning with related video lessons
The return of land to the grantor or grant- or’s heirs when the grant is over is BEST described as
2:48 • 0 views
A property sells for $325,000. If the commission is 6%, split equally between listing and selling brokers, what does each broker receive?
2:42 • 0 views
Property taxes on a Texas home are $6,000 per year. The sale closes on April 1. How much does the seller owe for prorated taxes?
2:56 • 0 views
A property is assessed at $250,000. The tax rate is $2.50 per $100. What is the annual tax?
2:50 • 0 views
Any individual may contact the Real Estate Commissioner to:
3:00 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.