AL Tax Proration 1

TAX PRORATION

File #

Property:

Date:

It is understood between the parties hereto that the exact amount of real property taxes applicable to the subject property for the current year is unknown. The tax proration herein was therefore based upon estimated taxes in the amount of $__________.

Should actual taxes for the current year vary from estimated taxes, each party shall have the right to demand and receive from the other a re-proration of taxes and reimbursement for the prorated amount of variation thereof. Each party consents to such proration and agrees to look to the other party should a re-proration become necessary, and to save and hold harmless as to such proration the mortgagee, realtors and closing agent.

Sellers:

________________________________

________________________________

________________________________

________________________________

Purchasers:

________________________________

________________________________

________________________________

________________________________

TAX RE-PRORATION WORKSHEET

Actual tax bill paid = $__________________ -:- 365 = $_______________ daily tax rate $________________ daily tax rate X __________ number of days prorated per closing statement = $_______________ actual tax proration.

Actual tax proration $_____________

LESS: Estimated tax proration $_____________

Difference, actual vs. estimated taxes $_____________

If difference is a positive number, Seller owes Buyer the difference.

If difference is a negative number, Buyer owes Seller the difference.