Escrow & Title
In Indiana, 'proration' at closing typically applies to:
AOnly the real estate commission
BProperty taxes, insurance premiums, and prepaid rents that must be divided between buyer and seller✓ Correct
CThe entire purchase price split between parties
DOnly the lender's origination fees
Explanation
Proration divides ongoing charges (property taxes, prepaid rents, HOA dues, etc.) between buyer and seller based on the closing date.
People Also Study
Related Indiana Questions
- Proration of property taxes at an Indiana closing means:Escrow & Title
- Indiana property taxes are $3,600 per year. The seller paid the full year's taxes in advance. If closing is on September 1, what credit does the seller receive from the buyer at closing? (Using 360-day year, 30-day months)Real Estate Math
- Annual property taxes on an Indiana home are $4,200. If the property is sold on April 1, what is the seller's tax proration credit (debit) to the buyer assuming taxes are paid in arrears and using a 360-day year?Real Estate Math
- An Indiana buyer offers $320,000 with a $15,000 earnest money deposit. The loan amount is $272,000. How much cash does the buyer bring to closing (excluding prepaid items and closing costs)?Real Estate Math
- In Indiana, when a purchase contract specifies that closing must occur 'on or before' a stated date, which party bears the risk if closing does not occur by that date?Contracts
- Indiana transfer taxes (county option) on the sale of real property are calculated based on:Escrow & Title
- In Indiana, property taxes are paid in arrears, which means at closing the seller typically:Escrow & Title
- The Equal Credit Opportunity Act (ECOA) prohibits Indiana lenders from discriminating in credit decisions based on:Finance
Key Terms to Know
Proration
The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Math Concepts
Study This Topic
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →