Escrow & Title
Prorations at closing are used to ensure that:
AThe agent receives their commission on closing day
BCosts and income are fairly divided between buyer and seller based on the date of ownership transfer✓ Correct
CThe lender's fees are distributed equally
DAll parties pay the same amount at closing
Explanation
Prorations (of property taxes, HOA dues, rents, and utilities) ensure that recurring costs and income are fairly allocated between buyer and seller based on their respective periods of ownership.
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