Escrow & Title
Proration in a real estate closing refers to:
ADividing the commission between agents
BAllocating ongoing expenses (taxes, HOA dues, insurance) between buyer and seller based on the closing date✓ Correct
CCalculating the loan payoff amount
DDetermining the title insurance premium
Explanation
Proration is the process of allocating ongoing property expenses (like property taxes, HOA dues, and prepaid insurance) between buyer and seller proportionally based on who owns the property for each period.
Related Arizona Escrow & Title Questions
- In Arizona, escrow is BEST described as:
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- The Affidavit of Disclosure in Arizona is required when:
- In Arizona, who typically serves as the escrow agent in a residential real estate transaction?
- In Arizona, the Buyer Advisory provided by AAR-member brokers to buyers PRIMARILY serves to:
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- In Arizona, escrow is typically handled by:
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