Escrow & Title
In a NH real estate transaction, 'prorations' at closing are used to:
ASplit the real estate commission between the listing and selling agents
BFairly divide ongoing property expenses (taxes, HOA fees, utilities) between the buyer and seller based on the closing date✓ Correct
CCalculate the buyer's monthly mortgage payment
DDetermine the title insurance premium
Explanation
Prorations fairly allocate ongoing property expenses between the buyer and seller based on their respective periods of ownership. Common prorations in NH include property taxes, HOA dues, and fuel oil remaining in the tank. The closing date determines the division point.
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