Question
*This is a real estate math question. I need to see the actual steps to accomplish the answer What amount is the buyer debited for
*This is a real estate math question. I need to see the actual steps to accomplish the answer
What amount is the buyer debited for the real estate taxes?
For this question prorate using a 30-day month and a 360-day year, prorate the taxes as of the close of escrow, and split the escrow fee 50-50 between the parties. Closing is July 31.
Use these relevant facts: Purchase price: $250,000 cash Earnest money: $10,000 Commission rate: 5%, split 50-50 Revenue stamps: $250 Real estate taxes: $3,500 (paid in full for current tax year of Jan. 1 through Dec. 31) Water bill: $450 (six months paid to Sept 15) Title insurance: $953.51 Recording fee: $20 Escrow fee: $868 Loan balance: $94,500 ( existing loan, including credit for the reserve account)
The correct answer is: $1,458.33
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