Escrow & Title
What does 'proration' mean in a Nevada real estate closing?
AThe lender's fee for processing the loan
BThe allocation of ongoing expenses (property taxes, HOA dues, rent) between buyer and seller as of the closing date✓ Correct
CThe title company's percentage of the sale price
DThe escrow officer's calculation of transfer taxes
Explanation
Prorations at closing fairly divide ongoing expenses and income between the seller and buyer as of the closing date. In Nevada, property taxes (which may be paid in advance or arrears) and HOA dues are commonly prorated. The party who benefits from the period pays for it.
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