Real Estate Math
A NJ property has annual taxes of $9,600. Taxes are paid in arrears. The closing is May 31. What is the seller's tax proration (using a 360-day year, seller responsible through closing)?
A$4,000✓ Correct
B$3,960
C$4,040
D$4,800
Explanation
Daily tax rate = $9,600 ÷ 360 = $26.67/day. Through May 31 = 5 months × 30 days = 150 days. Seller's share = 150 × $26.67 = $4,000. The seller owes the buyer a credit of $4,000 at closing for the pre-paid taxes covering the portion of the year the seller owned the property.
Related New Jersey Real Estate Math Questions
- A NJ property has a market value of $550,000 and an assessment ratio of 75%. At a tax rate of $3.20 per $100, what are the annual property taxes?
- A NJ buyer obtains a mortgage for $340,000 at 7% annual interest. What is the first month's interest payment?
- A seller's home is listed at $389,000. They receive an offer at 97% of the list price with a 6% commission. What is the seller's net proceeds before other closing costs?
- A NJ building's gross scheduled income is $156,000. With a 7% vacancy rate, what is the effective gross income?
- A NJ property is valued at $620,000. The Realty Transfer Fee for NJ (simplified: approximately $6.05 per $500 of consideration) would be approximately:
- A property's assessed value is 85% of market value. If the tax rate is $2.50 per $100 of assessed value and the market value is $320,000, what is the annual property tax?
- A NJ investor bought a property for $400,000, made $50,000 in improvements, and sold it for $520,000. Ignoring taxes and closing costs, what is the return on investment (ROI)?
- A NJ broker receives a 6% commission on a $450,000 sale. The salesperson who listed the property receives 30% of the broker's 6%. How much does the listing salesperson earn?
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →