Real Estate Math

If Indiana property taxes of $3,600 per year are prorated at closing on July 1 (the midpoint of the year), how much does the seller owe the buyer at closing?

A$900
B$1,500
C$1,800✓ Correct
D$3,600

Explanation

If taxes are paid in arrears and closing is July 1, the seller owes 6 months of taxes (January through June). $3,600 ÷ 12 × 6 = $1,800.

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