Escrow & Title
What is 'proration' in a real estate closing?
AThe agent's commission split
BThe division of ongoing expenses (like taxes or HOA dues) between buyer and seller based on the closing date✓ Correct
CThe lender's approval process
DThe title company's fee structure
Explanation
Proration divides ongoing expenses proportionally between the buyer and seller based on the closing date. For example, property taxes paid in advance by the seller would be credited back for the buyer's portion of the year.
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