Real Estate Math

A Wyoming buyer closes on October 1. Annual property taxes of $2,400 have not yet been paid for the year. Using a 365-day proration (buyer credited), how much does the seller owe the buyer at closing?

A$1,200
B$1,800✓ Correct
C$600
D$2,400

Explanation

Seller owns January 1 through September 30 = 9 months of 12. Proration = $2,400 × (9/12) = $2,400 × 0.

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