New Jersey Real Estate Practice Exam Practice Question
Rents on a duplex total $600 monthly and are due the first of each month. If the sale of the duplex closes on the 15th of a month, the rental income will be reflected on the closing statement as a
Correct Answer: A
Rationale: When a duplex sells mid-month, the rental income needs to be allocated fairly between the seller and the buyer. Since the rent for the month is $600, and the sale closes on the 15th, the seller is entitled to half of the rent, or $300, for the days they owned the property. This amount is a debit to the seller, reflecting the income they lose after the sale. Conversely, the buyer is credited $300, as they will benefit from the rental income for the remaining days of the month.
Option B is incorrect because it reverses the debit and credit roles. Option C inaccurately credits the entire $600 to the seller, disregarding the buyer's entitlement. Option D misallocates the total rent entirely to the buyer, which is not accurate given the seller's ownership up to the closing date.
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