Real Estate Math

Indiana property taxes are $3,600 per year. The seller paid the full year's taxes in advance. If closing is on September 1, what credit does the seller receive from the buyer at closing? (Using 360-day year, 30-day months)

A$900
B$1,200✓ Correct
C$1,800
D$2,700

Explanation

Taxes paid in advance: buyer owes seller for the remaining months (September–December = 4 months). Credit to seller = $3,600 × (4/12) = $1,200. The seller gets a $1,200 credit.

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