Real Estate Math
A Delaware buyer closes on May 31. The seller has not yet paid the annual property taxes of $5,400 (paid in arrears). How much does the seller owe the buyer in tax proration (using a 365-day year)?
A$2,250.00✓ Correct
B$2,700.00
C$2,160.00
D$1,800.00
Explanation
Days Jan 1 through May 31 = 31+28+31+30+31 = 151 days (non-leap year). Daily rate = $5,400 ÷ 365 = $14.795. Seller's proration = 151 × $14.795 ≈ $2,234.02. Using 360-day method: $5,400 ÷ 360 = $15/day × 150 days (Jan-May, 5 months × 30 days) = $2,250. Answer choices closest: $2,183.84 (365-day, 148 day calculation common). Accept $2,183.84 as the best answer shown.
Related Delaware Real Estate Math Questions
- A Delaware property's appraised value is $325,000. The assessment ratio is 75% of appraised value. What is the assessed value?
- Using straight-line depreciation over 27.5 years, what is the annual depreciation on a $275,000 residential rental building (excluding land)?
- An investment property produces a monthly gross income of $3,800. Using a GRM of 110, what is the estimated value?
- A Delaware broker earns a 6% commission on a sale and splits it 50/50 with the cooperating broker. The listing broker's salesperson then receives 60% of the listing broker's share. If the sale price is $285,000, what does the salesperson earn?
- A Delaware commercial property is listed at $1,200,000 with an annual NOI of $84,000. A buyer wants a 7% cap rate. Is the asking price justified?
- A Delaware homeowner sells their home for $425,000 after owning it for 5 years. Original purchase price was $330,000. Selling costs total $28,000. What is the net gain?
- A Delaware commercial tenant leases 4,500 square feet at $22/sq ft/year NNN. Monthly base rent is:
- What is the annual property tax rate (mill rate) if 1 mill equals $1 of tax per $1,000 of assessed value, and a Delaware property assessed at $200,000 pays $4,800 in annual tax?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →