Real Estate Math
Annual property taxes are $3,600. The seller owned the property from January 1 through September 30 (closing is October 1, using a 360-day year / 30-day months). How much does the seller owe the buyer in tax proration?
A$2,400
B$2,700✓ Correct
C$900
D$1,800
Explanation
Seller owned Jan–Sep = 9 months. Daily rate = $3,600 ÷ 12 = $300/month × 9 months = $2,700.
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