Practice Quiz

Florida Real Estate Exam

Category - Florida

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A property was sold where the property taxes had been paid for the current tax year.  The escrow closed 10/1/76.  However, the contract had allowed the seller to remain on the property for an additional three months after the close of escrow.  For the purpose of peroration, how would the taxes be treated?

  1. The seller would be credited for three months taxes
  2. The seller would be credited for six months taxes
  3. The buyer would be credited with six months taxes
  4. The seller would be credited with nine months taxes
Explanation
Answer A - Taxes are prorated as of the close of escrow. The taxes for the three month period that the seller remains on the property after the close of escrow will probably have to be paid as rent by the seller to the buyer for the purpose of prorating. The tax year runs from January 1 to December 31 and taxes are due and payable November 1 of each year.

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