NYS Salesperson Practice Exam NYS Salesperson Practice Exam Prorations and Closing Statements Quiz 1. A home in Huntington is sold with a closing date of May 14th. The annual property taxes of $12,000 were paid in advance by the seller on January 1st. What is the amount of the tax proration credited to the seller? a) $4,466.67 b) $7,633.33 c) $7,500.00 d) $7,533.33 2. A multi-family home in Hempstead has a tenant who pays $3,500 rent on the 1st of each month. If the closing takes place on September 20th, must the seller credit the buyer? a) $1,633.34 b) $ 1,734.66 c) $1,866.66 d) $1,976.00 3. A Long Island home is sold on October 10th. The seller recently filled the oil tank with 200 gallons of fuel. The cost of fuel is $4.00 per gallon. At closing, the tank is 3/4 full. How is this handled on the closing statement? a) $600 credit to the seller b) $600 credit to the buyer c) $800 credit to the seller d) $200 credit to the seller 4. Village taxes in Patchogue are $3,600 per year, paid in advance for the fiscal year starting June 1st. If the closing is on November 15th, what is the proration amount? a) $1,950 credit to the seller b) $1,650 credit to the seller c) $1,800 credit to the seller d) $1,950 credit to the buyer 5. A property in Riverhead closes on March 10th. The annual sewer bill of $480 is paid in arrears. How is this prorated? a) $93.33 debit to the seller b) $93.33 credit to the seller c) $80.00 debit to the seller d) $386.67 debit to the seller 6. School Taxes of $9,000 for the year (July 1 - June 30) were paid in advance. Closing is April 20th. What is the credit to the seller? a) $1,750 b) $1,500 c) $2,250 d) $7,250 7. On a closing statement, the 360/30 method assumes every month has how many days? a) 30 days b) 31 days c) 28 days d) Actual days in the month 8. A seller has a service contract for HVAC maintenance in Smithtown that costs $600 per year, paid in advance on Jan 1st. Closing is August 15th. What is the proration amount? a) $225 credit to the seller b) $375 debit to the seller c) $225 credit to the buyer d) $300 credit to the seller 9. If a closing occurs on the 15th of a 30-day month and the seller is responsible for the day of closing, what fraction of the month is the seller responsible for? a) 1/2 b) 14/30 c) 16/30 d) 15/31 10. Annual taxes are $18,000. Closing is set for February 20th. Taxes are paid in arrears. What is the seller's share of the taxes (debit) at closing? a) $2,500 b) $3,000 c) $15,500 d) $1,500 Submit Final Exam Review Incorrect Answers:
