Contracts
In a Louisiana sales contract, 'prorations' at closing refer to:
ACommission splits between cooperating brokers
BThe division of ongoing expenses (property taxes, HOA dues) between buyer and seller based on each party's period of ownership✓ Correct
CThe lender's calculation of monthly payment amounts
DThe apportioning of flood insurance proceeds after a claim
Explanation
Prorations allocate ongoing costs between buyer and seller based on their respective periods of ownership during the closing year — ensuring each party pays only for the time they own the property.
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