A buyer in Alaska closes on October 1. Annual property taxes of $3,600 have not yet been paid for the current year. Using a 360-day year (30 days per month), the seller owes the buyer a tax proration credit of:
Why $2,700 Is Correct
Answer A: $2,700
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
Key Real Estate Math Terms in This Question
People Also Study
Related Alaska Questions
- A buyer in Alaska closes on June 1. Annual property taxes are $4,380 and were paid by the seller through December 31 of the prior year. Using a 360-day year, how much does the buyer owe the seller at closing for the tax proration?Real Estate Math
- An Alaska buyer closes on March 15. Annual HOA dues of $2,400 were paid by the seller for the full year. How much does the buyer owe the seller at closing (using a 360-day year)?Real Estate Math
- An Alaska condo has an HOA fee of $375/month. Annual property taxes are $3,800 and homeowner's insurance is $1,200/year. What is the total annual PITI plus HOA (excluding P&I mortgage payments)?Real Estate Math
- An Alaska homeowner's insurance is $1,800/year, property taxes are $4,200/year, and the mortgage payment (P&I) is $1,650/month. What is the monthly PITI payment?Real Estate Math
- Proration of property taxes at closing in Alaska means:Escrow & Title
- An Alaska commercial property has a net operating income of $60,000 per year. Using a 6% cap rate, the estimated value is:Property Valuation
- In an Alaska real estate closing, proration of property taxes means:Escrow & Title
- An Alaska residential lot comparable to the subject sold 18 months ago for $80,000. The market has appreciated 3% per year since then. What is the time-adjusted value of the comparable?Property Valuation
Key Terms to Know
The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →