Escrow & Title
What is proration at closing and give an example?
AA rounding of numbers in the closing statement
BThe division of ongoing expenses (taxes, rents, HOA fees) between buyer and seller based on ownership during the billing period✓ Correct
CA reduction in the purchase price
DA distribution of commissions between agents
Explanation
Proration divides ongoing expenses/income between parties. Example: if annual property taxes are $3,650 and closing is on July 1, the seller owes 6 months ($1,825) to the buyer as a credit. Rents, HOA dues, and other recurring items are prorated similarly.
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