Real Estate Math

A West Virginia buyer closes on October 1. Annual property taxes of $2,400 have not been paid. The seller owes the buyer a prorated tax credit for how many months?

A9 months✓ Correct
B3 months
C6 months
D10 months

Explanation

If taxes are paid in arrears and closing is October 1, the seller is responsible for January through September = 9 months. Seller's credit = 9/12 x $2,400 = $1,800.

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