Real Estate Math

A Washington property's tax bill is $8,400/year. At closing on April 1, taxes are paid in arrears (seller owes Jan 1–Mar 31). How much does the seller owe at closing?

A$700
B$2,100✓ Correct
C$2,800
D$4,200

Explanation

Jan 1 to Apr 1 = 3 months. Seller's share = $8,400 × (3/12) = $8,400 × 0.25 = $2,100. Using the values given ($8,400), apply the appropriate formula.. The correct answer is $2,100.. This is a common calculation on the Washington real estate exam.

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