Escrow & Title
In New York, 'proration' at closing refers to:
AThe calculation of the broker's commission
BThe allocation of recurring expenses (taxes, rents, utilities) between buyer and seller based on the closing date✓ Correct
CThe adjustment of the purchase price for market conditions
DThe refund of the earnest money deposit
Explanation
Proration is the process of allocating ongoing expenses (property taxes, prepaid rents, utility costs) fairly between buyer and seller, with each party paying for their proportionate share based on ownership as of the closing date.
Related New York Escrow & Title Questions
- In New York, 'marketable title' means title that:
- Which type of New York deed is most commonly used to convey a property where the grantor does not want to warrant title (e.g., in foreclosure or estate sales)?
- In New York, a 'foreclosure by advertisement' is:
- Under New York law, which of the following defects would NOT be covered by a standard title insurance policy?
- A 'mechanic's lien' in New York is filed by:
- In New York, which type of deed is most commonly used in arm's-length residential sales?
- A mortgage satisfaction (discharge) should be recorded because:
- In New York, the 'New York City Register' is:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →