Escrow & Title
In a Montana real estate closing, prorations are calculated to allocate costs so that:
AThe seller pays for the entire year's taxes regardless of closing date
BEach party pays only for the time period they own or will own the property✓ Correct
CThe buyer pays all closing costs from the first day of ownership
DProrations are optional and only done upon request
Explanation
Prorations at closing divide ongoing expenses (property taxes, HOA dues, rents, etc.) between buyer and seller based on the closing date, ensuring each party pays only for the time period they are responsible for the property.
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