Escrow & Title
Proration at closing adjusts financial items so that:
AAll costs are paid by the buyer
BEach party pays their fair share for the period they own or owe the item✓ Correct
CThe lender covers all closing costs
DThe closing attorney sets the split
Explanation
Proration ensures that items like property taxes, HOA dues, and rents are divided fairly so that each party pays (or receives credit for) only the portion attributable to their period of ownership.
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