Real Estate Math
Missouri property taxes are paid in arrears. At closing on October 31, the buyer will owe the seller for property taxes covering:
ANo proration — taxes are always paid in advance
BOctober 1 through October 31 (current year taxes accrued but not yet paid)
CJanuary 1 through October 31 of the current year✓ Correct
DThe previous year only
Explanation
Since Missouri taxes are paid in arrears (you pay this year's taxes next year), at an October 31 closing, taxes for January 1 through October 31 have accrued but not been paid. The buyer receives a credit (the seller owes the buyer) for the seller's portion of the unpaid taxes.
Related Missouri Real Estate Math Questions
- A Missouri property sold for $285,000. The buyer paid 20% down and financed the rest. What was the loan amount?
- A Missouri home is assessed at $72,000. The tax rate is $9.50 per $100. What are the monthly tax escrow payments?
- A Missouri property manager collected $12,600 in rents for October. The management fee is 9%. The net remitted to the owner is:
- A Missouri property's annual operating expenses are $14,400 and the EGI is $48,000. What is the operating expense ratio?
- A Missouri property has an NOI of $36,000 and operating expenses of $14,000. What is the effective gross income if the NOI represents EGI minus expenses?
- A Missouri property's appraised value is $310,000. The assessed value for residential property is 19% of that. If the tax rate is 8 mills, annual taxes are:
- A Missouri property's listing price is $325,000. The buyer offers $310,000. The offer-to-list ratio is approximately:
- A Missouri rental property has potential gross income of $60,000/year with 5% vacancy. Effective gross income is:
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →