Escrow & Title
Proration at closing means that certain costs and credits are:
APaid entirely by one party
BDivided proportionally between buyer and seller based on their respective time of ownership✓ Correct
CForgiven at the time of closing
DPaid by the escrow company
Explanation
Proration divides certain expenses (such as property taxes, HOA dues, and rent) proportionally between buyer and seller based on the number of days each party owned the property during the billing period.
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