An RPA has been fully executed by buyer and seller, and close of escrow will occur on May 7th. Seller already paid the property taxes for the entire year at $1112.  Since the sellers are responsible for property taxes up to the day escrow closes, how much do the buyers need to credit seller for their portion of property tax already paid?

Answer rating: 100% (QA)

To determine the amount the buyers need to credit the seller for their portion of property taxes already paid follow these steps 1 Calculate the number of days from the start of the year to the escrow closing date Start of the year January 1st Escrow closing date May 7th Calculate the number of days from January 1st to May 7th Number of days End date Start date Number of days May 7th January 1st Number of days 127 days 2 Calculate the proportion of the year that has passed by the escrow closing date Proportion of the year Days passed Total days in the year Proportion of the year 127 days 365 days 0348 3 Calculate the prorated property tax ... View the full answer