Escrow & Title

A South Dakota property's annual taxes of $2,400 have not been paid. Closing is on April 1. What is the seller's tax proration (amount owed at closing)?

A$200
B$600✓ Correct
C$1,800
D$2,400

Explanation

Taxes: $2,400 ÷ 12 months = $200/month. Jan + Feb + Mar = 3 months × $200 = $600. The seller owes $600 for the portion of the year they owned the property (assuming taxes paid in arrears).

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