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?
Question & Answer
Review the question and all answer choices
$1,500
$4,500
Option B incorrectly calculates the seller's share as $4,500, which would be the buyer's share for the remaining 9 months of the year, not the seller's responsibility.
$3,000
Option C of $3,000 represents exactly half of the annual tax amount, showing a misunderstanding of the proration calculation and the actual ownership period.
$2,000
Option D of $2,000 doesn't correspond to any logical calculation based on the monthly tax rate or ownership period, indicating an arbitrary guess rather than proper calculation.
Why is this correct?
Seller owns for 3 months (Jan-Mar). $6,000 ÷ 12 = $500/month × 3 months = $1,500.
Continue Learning
Explore this topic in different formats
More Real Estate Math Videos
Continue learning with related video lessons
Annual property taxes are $4,380. The property closes on March 15. If the seller has NOT paid taxes for the current year, how much does the seller owe at closing? (Use 365 days)
3:08 • 0 views
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
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.