Real Estate Math

A Maryland home's annual taxes are $5,400. Settlement occurs on March 1 (day 60 of the year). In a 365-day proration, how much does the seller owe in property taxes (for the days they owned the property)?

A$872.87✓ Correct
B$900.00
C$888.49
D$894.25

Explanation

Daily tax = $5,400 ÷ 365 = $14.7945. Seller's days (Jan 1 – Feb 28 = 59 days): 59 × $14.7945 = $872.87. For day 60: settlement day is typically credited to buyer. Seller owes for 59 days = $872.87 ≈ $888 (depending on convention). The49.

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