Escrow & Title
In Maryland, 'prorations' at settlement ensure that:
AAll parties pay equal shares of settlement costs
BRecurring costs like property taxes and HOA fees are fairly divided between buyer and seller based on the settlement date✓ Correct
CThe title company receives a pro-rated fee
DThe broker's commission is divided proportionately
Explanation
Prorations allocate recurring costs (taxes, HOA fees, rents) between buyer and seller based on who owns the property for each portion of the time period, with the settlement date as the dividing line.
Related Maryland Escrow & Title Questions
- A special warranty deed in Maryland provides which level of title guarantee?
- A Maryland property buyer purchases property at a foreclosure sale and takes title by a:
- In Maryland, a seller's failure to transfer title that is free of material encumbrances at settlement may allow the buyer to:
- In Maryland, transfer taxes on a real estate sale are paid by:
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