Real Estate Math
A buyer in Delaware closes on August 15. Annual property taxes of $3,600 have been paid by the seller for the full year. How much does the buyer owe the seller in proration (using a 365-day year)?
A$9.86✓ Correct
B$1,536.99
C$1,600.00
D$2,167.12
Explanation
Buyer owes seller for the days remaining in the year after closing. Days from Aug 15 to Dec 31: Aug 16 remaining days = 16, Sept = 30, Oct = 31, Nov = 30, Dec = 31 = 138 days. Daily rate = $3,600 ÷ 365 = $9.863. Buyer's portion = 138 × $9.863 ≈ $1,361.09. 139 × $9.863 ≈ $1,370.97.88 (varies by method). Using 360-day method: $1,400 typical.
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