What will the seller owe at closing if annual property taxes of $1,750 have not yet been paid and the closing is on May 1?

To determine what the seller owes at closing regarding unpaid property taxes, it's essential to first ascertain the property tax amount that is being prorated up until the closing date.

Given that the annual property tax is $1,750, one must calculate the daily tax amount by dividing the annual tax by the number of days in the year. The calculation is as follows:

1. Calculate Daily Tax Rate:

[

\text{Daily Tax Rate} = \frac{\text{Annual Property Taxes}}{365} = \frac{1750}{365} \approx 4.79

]

2. Calculate Days Outstanding:

From the beginning of the year (January 1) to the closing date (May 1), there are 120 days (31 days in January + 29 in February for a leap year + 31 in March + 30 in April).

3. Calculate Total Taxes Owed Up to Closing:

Multiply the daily tax rate by the number of days:

[

\text{Total Taxes Owed} = \text{Daily Tax Rate} \times 120 \approx 4.79 \times 120 \approx 574.