Escrow & TitleIntermediateDelaware Exam
What is 'proration' at a Delaware real estate closing?
AThe allocation of the broker's commission between brokers
BThe division of ongoing expenses (taxes, rents, HOA fees) between buyer and seller based on the closing dateCorrect
CThe calculation of transfer taxes due at closing
DThe adjustment of the purchase price after the inspection
Why The division of ongoing expenses (taxes, rents, HOA fees) between buyer and seller based on the closing date Is Correct
Answer B: The division of ongoing expenses (taxes, rents, HOA fees) between buyer and seller based on the closing date
Proration at closing involves dividing ongoing expenses such as property taxes, prepaid rents, and HOA dues between buyer and seller based on the proportion of time each owned the property during the billing period.
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
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