Printable cheat sheet

    Florida real estate proration cheat sheet

    Built for Florida sales associate exam prep. Use this to name the day-count method, closing-day setup, and credit direction before you touch the arithmetic.

    Open calculator
    FormulaAmount / days x proration days

    Find the daily rate first. Then multiply by the days assigned to the buyer or seller.

    Start with 365Actual calendar days

    For exam practice, start with actual calendar days and a 365-day year unless the stem says 360-day year, banker's year, or 30-day month.

    Start with sellerSeller owns closing day

    Use this as the exam-prep starting setup. If the question says the buyer owns closing day, follow the question.

    Unpaid taxesSeller credits buyer

    Florida property taxes are commonly handled as an in-arrears item in exam-style questions.

    Prepaid expenseBuyer credits seller

    The seller paid for time the buyer will own, so the buyer reimburses the seller.

    Rent paid aheadSeller credits buyer

    The seller collected rent for days the buyer will own after closing.

    The exam setup rule

    1. Name the item first: unpaid tax, prepaid expense, rent collected ahead, or another prorated item.
    2. Name the period: annual, quarterly, or monthly.
    3. Use the day-count method stated in the question.
    4. Name who owns closing day before counting days.
    5. Decide the credit direction before calculating the dollar amount.

    Four worked examples

    Unpaid annual taxes$4,380 annual taxes, July 15 closing, seller owns closing day

    $4,380 / 365 = $12. Seller days through July 15 are 196. Seller credit to buyer: 196 x $12 = $2,352.

    360-day banker's year$3,600 annual taxes, June 12 closing, buyer owns closing day

    $3,600 / 360 = $10. Banker's count to June 12 is 162, but buyer owns closing day, so seller days are 161. Seller share: $1,610.

    Prepaid HOA dues$600 June HOA dues, June 10 closing, seller owns closing day, 30-day month

    $600 / 30 = $20. Buyer owns June 11 through June 30, or 20 days. Buyer reimburses seller $400.

    Rent collected in advance$2,400 June rent collected, June 10 closing, seller owns closing day, 30-day month

    $2,400 / 30 = $80. Buyer days are June 11 through June 30, or 20 days. Seller credits buyer $1,600.

    Traps to check

    1. Do not use 365 days when the stem says 360-day year or banker's year.
    2. Do not change the seller-owned closing-day setup unless the stem gives closing day to the buyer.
    3. Do not mix annual, quarterly, and monthly base amounts.
    4. Do not treat rent collected in advance like an unpaid tax bill.
    5. Do not calculate first and choose the credit direction later.

    Sanity check

    1. More proration days should create a larger credit or debit.
    2. Unpaid items usually credit the buyer because the seller used the item before paying for it.
    3. Prepaid items usually credit the seller because the seller paid for time the buyer will own.
    Practice the patternPass Florida drills prorations, day counts, and mixed closing math.

    Use the calculator, Math Coach, Trap Library, and 1,002 Florida-specific questions at passfloridarealestate.com.

    Get Pass Florida

    Sources: DBPR Real Estate Sales Associate Candidate Information Booklet, Florida Statutes Chapter 475, Florida Administrative Code 61J2, and F.S. 197.333 for property taxes due in arrears. For exam prep only, not tax or legal advice.

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