Escrow & Title

What is 'proration' at an Idaho real estate closing?

AThe process of dividing the commission between brokers
BThe allocation of recurring costs (taxes, HOA dues, rent) between buyer and seller based on the closing date✓ Correct
CThe calculation of transfer taxes
DThe division of earnest money

Explanation

Proration is the process of dividing costs such as property taxes, homeowner association dues, and prepaid rents between buyer and seller based on their respective period of ownership around the closing date.

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