Escrow & Title
What does 'proration' mean in the context of an Idaho real estate closing?
AAdding buyer's costs to the seller's costs
BDividing ongoing costs (like property taxes or HOA dues) proportionally between buyer and seller based on the closing date✓ Correct
CThe lender's fee for processing the loan
DThe title company's commission
Explanation
Proration divides expenses (taxes, HOA dues, rents, insurance) between buyer and seller based on the proportion of the year each party owns the property. In Idaho, taxes are typically prorated to the day of closing.
Related Idaho Escrow & Title Questions
- What is the difference between an owner's title insurance policy and a lender's title insurance policy?
- Which type of title insurance protects the lender's interest in the property?
- In Idaho, a judicial foreclosure differs from a non-judicial foreclosure in that:
- Annual property taxes are $3,600 and are paid in arrears. Closing is on April 30. How much does the seller owe in prorated taxes? (Using 360-day year, 30-day months)
- A title search examines public records to determine:
- The priority of liens is generally determined by:
- In Idaho, which instrument is recorded to give public notice of a lien against real property?
- For a deed to be valid, it must contain all of the following EXCEPT:
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →