Escrow & Title
A 'prorated' item on a Georgia closing statement means:
AA. The item is paid in full by one party
BB. The item is divided proportionally between buyer and seller based on their respective ownership periods✓ Correct
CC. The item is paid by the lender
DD. The item is negotiated by the agents
Explanation
Proration allocates certain expenses (property taxes, HOA fees, prepaid rents, utilities) between buyer and seller based on the portion of the billing period each party owned or used the property. Prorations appear as credits and debits on the closing statement.
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