Real Estate Math
Property taxes for a NJ home are $9,600 per year. The closing occurs on April 30. How much is the seller credited (or debited) for taxes at closing, assuming taxes are paid in arrears and the tax year is January–December?
ASeller is debited $3,200✓ Correct
BSeller is debited $9,600
CSeller is credited $3,200
DNo adjustment is needed
Explanation
Taxes are paid in arrears (seller owes for the period they owned). Jan 1 – Apr 30 = 4 months. Daily rate = $9,600 ÷ 12 = $800/month × 4 months = $3,200. Seller is debited $3,200, which goes to the buyer as a credit.
Related New Jersey Real Estate Math Questions
- A NJ property is listed for $385,000. After 60 days without an offer, the seller reduces the price by 3%. What is the new list price?
- A NJ property is listed at $419,000. The seller accepts an offer for 97% of list price. What is the accepted sale price?
- A NJ income property has a 7% cap rate. If the NOI increases from $56,000 to $63,000, what is the increase in property value?
- A NJ property is assessed at $280,000, and the tax rate is $2.50 per $100 of assessed value. What are the annual property taxes?
- A NJ salesperson earns 60% of the gross commission on a $550,000 sale at 5%. What is the salesperson's share?
- A property has a gross rent multiplier (GRM) of 140 and monthly gross rent of $2,800. What is the estimated value?
- A NJ buyer makes a $20,000 earnest money deposit on a $500,000 home purchase. What percentage is the deposit of the purchase price?
- A commercial space of 4,500 sq ft leases at $18 per square foot per year on a NNN basis. What is the annual base rent?
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 →