Escrow & Title
What is 'prorating' in a Nevada real estate closing?
AA discount given to buyers who purchase in new Nevada developments
BThe process of dividing ongoing expenses (property taxes, HOA dues, rent) between buyer and seller based on their respective ownership periods, typically calculated as of the closing date✓ Correct
CThe process of recalculating the commission based on final sale price
DThe Nevada title company's review of all outstanding liens
Explanation
Proration divides property taxes, HOA fees, rental income, and prepaid expenses between buyer and seller based on how many days each owns the property in the applicable period. In Nevada, closings typically prorate using a 30-day month or actual days, as specified in the purchase agreement. Property taxes are often prorated based on the prior year's taxes if the current year's bill is not yet available.
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