Ontario Real Estate Licensing Exam Practice · Question
A seller entered into an Agreement of Purchase and Sale for their condo in London, Ontario, for $650,000. They paid the property taxes for the full year of $3,500. The closing date is June 1st. What amount will the seller receive as a credit for property tax adjustments on the Statement of Adjustments?
Annual property taxes: $3,500. Daily tax rate: $3,500 / 365 = $9.589. The seller has paid for the full year. The buyer is responsible for taxes from June 1st to
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Question: A seller entered into an Agreement of Purchase and Sale for their condo in London, Ontario, for $650,000. They paid the property taxes for the full year of $3,500. The closing date is June 1st. What amount will the seller receive as a credit for property tax adjustments on the Statement of Adjustments?
Answer options: ✅ $2,036.99
- $1,463.01
- $1,750.00
- $1,535.50
Correct answer: $2,036.99
Explanation: Annual property taxes: $3,500. Daily tax rate: $3,500 / 365 = $9.589. The seller has paid for the full year. The buyer is responsible for taxes from June 1st to December 31st, which is 214 days (30+31+31+30+31+30+31). Therefore, the buyer owes the seller $9.589 * 214 = $2,051.05. Option A is the closest.
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