Escrow & Title
Prorations at closing are used to:
ACalculate the broker's commission
BFairly divide ongoing expenses (taxes, HOA fees) between buyer and seller based on the closing date✓ Correct
CDetermine the final purchase price
DCalculate the title insurance premium
Explanation
Prorations allocate ongoing property expenses (property taxes, HOA fees, prepaid rents) between buyer and seller proportionally based on the closing date, so each party pays only for their period of ownership.
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