Real Estate Math
A North Dakota home's annual property taxes are $4,200. At closing on April 1, the seller has paid the first half of the year's taxes. What tax credit does the buyer receive from the seller?
A$1,050✓ Correct
B$2,100
C$3,150
D$4,200
Explanation
Taxes already paid for the full first half (Jan 1 - Jun 30 = $2,100 for 6 months). Seller owned through April 1 (3 months = $1,050). Buyer gets the property April 1 and seller has paid through June 30. Seller is owed a credit for the period the buyer occupies that the seller prepaid: April, May, June = 3 months × $350/month = $1,050 credit to buyer.
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