Real Estate Math

A Kansas buyer closes on October 15. Annual property taxes are $3,650 and are paid in arrears. The seller owes taxes for Jan 1 – Oct 15 (288 days). What is the seller's proration?

A$2,818.08
B$2,880.00✓ Correct
C$2,920.00
D$3,040.00

Explanation

Daily tax = $3,650 ÷ 365 = $10/day. Seller's share = 288 days × $10 = $2,880.

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