Escrow & Title
Prorations at closing are used to:
ACalculate the broker's commission
BDivide recurring expenses such as property taxes and HOA fees between buyer and seller✓ Correct
CDetermine the down payment amount
DCalculate transfer taxes only
Explanation
Prorations allocate ongoing expenses such as property taxes, homeowner association fees, and prepaid items between buyer and seller based on the closing date.
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