Escrow & Title
Proration at closing refers to:
AThe process of negotiating commission splits
BDividing ongoing expenses or income between buyer and seller based on the closing date✓ Correct
CCalculating depreciation on investment property
DSplitting closing costs equally between buyer and seller
Explanation
Proration is the process of dividing ongoing expenses (such as property taxes, HOA dues, and prepaid rent) between buyer and seller based on the closing date. Each party pays their proportionate share.
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