Escrow & Title
Proration at closing adjusts for:
AThe agent's commission split
BItems paid in advance or in arrears so each party pays their fair share✓ Correct
CThe transfer tax owed to the state
DThe earnest money deposit amount
Explanation
Proration divides ongoing expenses like property taxes, HOA fees, and prepaid rents between the buyer and seller based on their respective periods of ownership, ensuring each party pays their proportionate share.
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