Real Estate Math

Real property taxes for the year are $9,600. Closing occurs on March 1 (taxes paid in arrears for the prior year). The seller is responsible for taxes from January 1 through February 28 (59 days out of 365). How much does the seller owe the buyer?

A$800
B$1,550.14✓ Correct
C$9,600
D$2,400

Explanation

Daily tax rate = $9,600 ÷ 365 = $26.30/day.

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