Escrow & Title

In Maine, the term 'proration' in a real estate closing refers to:

AThe calculation of the commission split
BThe fair division of ongoing property expenses between buyer and seller based on the closing date✓ Correct
CThe percentage of the purchase price put into escrow
DThe adjustment of the appraised value

Explanation

Proration is the process of fairly dividing ongoing property costs (taxes, rents, insurance, utilities) between buyer and seller based on the closing date — each party pays for their respective period of ownership.

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