Florida Real Estate Practice Exam

How is the daily amount of property taxes calculated for a mid-month closing?

1. Divide monthly tax amount by 30

2. Divide monthly tax amount by 31

3. Multiply monthly tax amount by days in a month

4. Annual taxes divided by 365 days and then multiply by days till closing

The correct answer is: Divide monthly tax amount by 30

The other options are incorrect because they do not account for the mid-month closing and are based on a full month of property taxes. Option B uses the total number of days in a month, which would result in a higher daily amount for a mid-month closing. Option C simply multiplies the monthly tax amount by the total number of days, also resulting in a higher daily amount. Option D is based on annual taxes and does not take into account the specific monthly taxes. Option A is the most accurate because it specifically divides the monthly tax amount by 30 days, which would result in a more precise daily amount for a mid-month closing.