Escrow & Title
In New Mexico, 'proration' at closing refers to:
AThe commission split between brokers
BThe allocation of prepaid or unpaid expenses (property taxes, HOA fees, rents) between buyer and seller based on the closing date✓ Correct
CThe title insurance premium calculation
DThe loan origination fee
Explanation
Proration divides ongoing expenses between buyer and seller as of the closing date. Property taxes paid in arrears are credited to the buyer; prepaid items like HOA fees are credited to the seller. Proration ensures each party pays their proportionate share.
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