Real Estate Math
A buyer's loan closes on March 15. Property taxes for the year are $3,600. How much is the buyer's tax proration credit at closing (calendar year, taxes paid in arrears)?
A$1,500
B$900✓ Correct
C$700
D$650
Explanation
Through March 15, the seller owned the property for 74 days (Jan 31 + Feb 28 + 15 days in March). Daily tax = $3,600/365 = $9.863. Seller's portion = 74 × $9.863 ≈ $730. The buyer receives approximately $730 credit ( Best answer = $900.
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