Escrow & Title
In North Dakota, 'prorations' at closing are used to:
ADetermine the listing agent's commission
BFairly divide ongoing property expenses (taxes, insurance, HOA fees) between buyer and seller based on the closing date✓ Correct
CCalculate the buyer's down payment
DSet the mortgage interest rate
Explanation
Prorations adjust prepaid or accrued expenses at closing so each party pays their fair share. Property taxes paid in advance may be credited to the seller; rent collected in advance goes to the buyer. Prorations ensure neither party over- or under-pays for the period they own the property.
Related North Dakota Escrow & Title Questions
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