Real Estate Math
Proration at closing: The seller has prepaid property taxes of $3,600 for the full year. Closing is on September 30 (day 273 of 365). How much does the buyer owe the seller at closing? (Use 365-day method)
A$720
B$900✓ Correct
C$1,073
D$2,880
Explanation
Days remaining after Sept 30 = 365 − 273 = 92 days. Buyer's share = $3,600 × (92/365) = $3,600 × 0.
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