Escrow & Title
In a closing statement, a proration is used to:
ACalculate the broker's commission
BAllocate ongoing expenses between buyer and seller based on the closing date✓ Correct
CDetermine the loan origination fee
DAdjust the purchase price for market conditions
Explanation
Prorations at closing allocate ongoing expenses — such as property taxes, HOA dues, and prepaid rents — between buyer and seller based on their respective periods of ownership. The party who owes for a period they did not own is charged; the party who prepaid is credited.
Related Alaska Escrow & Title Questions
- A mechanic's lien in Alaska may be filed by:
- In Alaska, an 'easement by necessity' arises when:
- In Alaska, the person responsible for preparing and distributing the Closing Disclosure to the borrower is:
- The purpose of a 'satisfaction of mortgage' (or deed of reconveyance in a trust deed state) is to:
- In Alaska, a judgment lien becomes effective on a debtor's real property when it is:
- In Alaska, a 'power of attorney' may be used in a real estate closing to allow:
- In Alaska, when is a deed considered delivered and effective?
- Under Alaska's trust account requirements, when must an earnest money check be deposited in the broker's trust account?
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →