Escrow & Title
What does 'proration' at closing mean?
ASplitting the closing costs equally between buyer and seller
BAllocating ongoing expenses (taxes, HOA dues, rent) between buyer and seller based on the date of closing✓ Correct
CReducing the purchase price by the amount of outstanding liens
DAdjusting the loan interest rate based on the closing date
Explanation
Proration is the process of dividing property-related expenses (property taxes, HOA fees, prepaid rent) between buyer and seller based on how many days each owned the property during the billing period.
Related Arkansas Escrow & Title Questions
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