Escrow & Title
In a Florida real estate closing, 'proration' most commonly applies to:
AThe real estate commission
BProperty taxes, HOA dues, and prepaid rent✓ Correct
CTitle insurance premiums
DMortgage origination fees
Explanation
Proration divides ongoing expenses (property taxes, HOA dues, prepaid rents, utilities) proportionally between buyer and seller based on the closing date, so each party pays only their fair share for the period they own the property.
Related Florida Escrow & Title Questions
- In Florida, a 'tax deed' transfers title to a property when:
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- A Florida seller has a mortgage with an outstanding balance of $150,000 at 4.5% annual interest. The closing is on March 15. Interest is paid in arrears. What is the seller's interest proration that will appear as a credit to the buyer?
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