Real Estate Math
Annual property taxes are $6,000. The property sells on April 1 (taxes paid in arrears). How much does the seller owe the buyer at closing?
A$1,500✓ Correct
B$4,500
C$3,000
D$500
Explanation
January through March = 3 months. $6,000 ÷ 12 = $500/month × 3 = $1,500 owed by seller for their share of the year (Jan–Mar).
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