Real Estate Math
A closing occurs on August 15. Annual property taxes of $5,400 have not been paid yet and will be paid by the buyer at year-end. Using a 360-day year (30-day months), how much is the seller's proration credit to the buyer?
A$3,150
B$3,375✓ Correct
C$2,678
D$2,700
Explanation
Seller occupied the property from January 1 to August 15. Using 30-day months: January through July = 7 months = 210 days.
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