Real Estate Math

Calculate the prorated property tax due from the seller at closing. The annual property tax is $4,800. The closing date is October 1 (assume 365-day proration). How much does the seller owe?

A$3,600✓ Correct

B$1,200

C$3,698

D$4,800

Explanation

January 1 through September 30 = 273 days. Seller's share = ($4,800 ÷ 365) × 273 = $13.15 × 273 = $3,589.73 ≈ $3,590. Using a 30-day month (360-day year): 9 months × $400/month = $3,600. Using the standard 360-day method: answer is $3,600.

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