Real Estate Math
A Washington property tax bill is $6,500 per year. The annual taxes are prorated at closing, and the seller has already paid the full year. The buyer closes on August 1. How much does the escrow company credit the seller?
A$2,166
B$2,708✓ Correct
C$3,250
D$4,333
Explanation
Seller paid full year. Buyer owns from Aug 1–Dec 31 = 5 months. Seller's credit = 5 ÷ 12 × $6,500 = $2,708.33 ≈ $2,708. Seller is reimbursed for the period the buyer will own the property.
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