If real estate taxes of $3,760 have not been paid and the sale closes on June 23, what is the proration amount for the buyer?

To determine the proration amount for the buyer regarding unpaid real estate taxes, you must calculate what portion of the annual tax bill is applicable to the period of ownership for the buyer at closing.

First, take the total annual real estate taxes of $3,760 and divide that by the number of months in a year (12) to find the monthly tax amount:

$3,760 / 12 = $313.33 per month.

Next, calculate how many months are left in the tax period from the date of closing (June 23) to the end of the tax year (December 31). There are 6 months remaining in the tax year (July through December), plus the partial month of June during which the buyer owns the property. Since the buyer is only responsible for the property for the remaining portion of June starting from the closing date (June 23), you will want to calculate the daily rate for June.

There are 30 days in June, so the daily rate is:

$313.33 / 30 = $10.44 per day.

In June, since the buyer owns the property for 8 days (from the 23rd to the 30th), the buyer’s share would be:

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