Question 48, sample test #2 page p. 502 in Modern Real Estate Book
Vested
🗣️I am stumped the following question:
A real estate transaction has a closing date of November 15. The seller, who is responsible for costs up to and including the date of settlement, has already paid the property taxes of $11,160 for the calendar year. On the closing statement, the buyer will be A. debited $1,395. B. debited $9,765. C. credited $1,395 D. credited $9,765.
The answer is C.
My answer was $1,406 (46 days x $30.58)
Comments
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bobratahan Licensing, California Licensing Career Launcher, California Licensing, Buyer Agency Professional (BAP) Posts: 416Moderator
🚨@Vinita11014982
The answer is $11,160 divided by 365=$31(rounded up)x45=$1395
Buyer is debited-the answer A
Seller has the day of Close.
Bobra G. Tahan -Instructor
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Thank you!!
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Why would the buyer be credited if the taxes were pre-paid by the seller?
What state does this question apply to?
The fiscal year for California runs from July 1st to June 30th, so this is not specific to California.
What is the fiscal tax year here?3 -
bobratahan Licensing, California Licensing Career Launcher, California Licensing, Buyer Agency Professional (BAP) Posts: 416
Moderator
🚨It should state the buyer will be debited. The answer is A (I am working to get this corrected)
This is a generic question not related to any specific state
You are correct this is not a CA specific question. The fiscal year you stated is correct for CA.
The question does not state a fiscal year it has says a calendar year which is 360 days for proration.
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