Escrow & Title
What is 'proration' in a Delaware real estate closing and what items are typically prorated?
AThe commission split between listing and cooperating brokers
BThe fair division of periodic charges (property taxes, homeowner association dues, rent, utilities) between buyer and seller as of the closing date — each party pays their proportionate share✓ Correct
CThe lender's allocation of mortgage payments between principal and interest
DThe state's allocation of transfer tax between buyer and seller
Explanation
Proration divides recurring charges between buyer and seller as of closing. Items typically prorated in Delaware: property taxes (paid in arrears — seller owes from Jan 1 to closing date), HOA dues, prepaid rent (seller's credit to buyer), and sometimes utilities. The goal is for each party to pay only their actual period of ownership.
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