Escrow & Title
In Montana, 'proration' at closing refers to:
AThe commission split between listing and selling brokers
BDividing recurring costs (taxes, HOA fees, insurance) between buyer and seller based on the closing date✓ Correct
CThe lender's fee for processing the loan
DThe title insurance premium calculation
Explanation
Proration is the process of dividing recurring ownership costs—such as property taxes, HOA dues, and prepaid insurance—between buyer and seller based on each party's ownership period relative to the closing date.
Related Montana Escrow & Title Questions
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