Escrow & Title
At Michigan closing, prorations are used to:
ADivide the commission between listing and selling brokers
BAllocate ongoing expenses like property taxes and HOA fees fairly between buyer and seller✓ Correct
CCalculate the buyer's total closing costs
DDetermine the title insurance premium
Explanation
Prorations at closing allocate periodic expenses (property taxes, HOA dues, prepaid insurance) between buyer and seller based on their respective periods of ownership, ensuring each party pays their fair share.
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