A NC property taxes are paid in arrears. If the annual tax bill is $4,380 and closing occurs on July 1, the seller's prorated tax obligation (for Jan 1–Jun 30 = 181 days) is approximately:
Why $2,172 Is Correct
Answer C: $2,172
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related North Carolina Questions
- Annual property taxes of $3,600 are prorated to closing on September 1. The seller is responsible for taxes through August 31. Using the statutory (360-day) year, how much does the seller owe?Real Estate Math
- A prorated property tax credit is given to the buyer at closing. If the annual tax is $3,650 and closing is on March 1 (59 days into the year), the seller's share of taxes is approximately:Real Estate Math
- A NC property taxes are paid in arrears. The annual tax is $5,110 and closing occurs September 30. What is the seller's share of taxes (Jan 1 through Sept 30 = 273 days)?Real Estate Math
- How many hours of pre-license education are required to sit for the North Carolina broker license exam?North Carolina License Law
- How many questions are on the North Carolina real estate broker licensing exam?North Carolina License Law
- What is the minimum passing score on the North Carolina real estate licensing exam?North Carolina License Law
- Designated agency in North Carolina occurs when:Agency
- In North Carolina, the 'due diligence fee' paid at the time of an offer is:Contracts
Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →