Escrow & Title

A Virginia seller paid $3,600 in annual property taxes. The closing occurs on September 1. Using a 360-day year, how much does the seller owe the buyer as a proration credit?

A$2,400✓ Correct
B$2,700
C$2,880
D$3,000

Explanation

Daily rate = $3,600 ÷ 360 = $10/day. Jan 1 to Sep 1 = 8 months = 240 days. Seller owes 240 × $10 = $2,400. The seller has used 8 months of the tax year and must credit the buyer at closing.

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