Escrow & Title
Prorations in escrow refer to:
AFees charged by the escrow company
BThe division of ongoing expenses (like property taxes and HOA dues) between buyer and seller based on the closing date✓ Correct
CPenalties for late mortgage payments
DLender discount points
Explanation
Prorations are the equitable division of ongoing property expenses between buyer and seller as of the closing date. Common items prorated include property taxes, HOA dues, and prepaid rent on investment properties.
Related California Escrow & Title Questions
- Who selects the escrow company in California?
- What does 'escrow' mean in a California real estate transaction?
- Which type of lien takes priority regardless of when it was recorded?
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- What is the difference between an 'owner's title insurance policy' and a 'lender's title insurance policy'?
- Which of the following liens has the highest priority when multiple liens exist on a property?
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