Escrow & Title

Proration at closing means:

ASplitting all closing costs equally between buyer and seller
BAllocating ongoing expenses (taxes, HOA dues, rent) proportionally between buyer and seller based on the closing date✓ Correct
CReducing the sale price proportionally for disclosed defects
DAdjusting the commission based on the final sale price

Explanation

Proration divides ongoing expenses such as property taxes, HOA dues, prepaid rents, and utility bills between buyer and seller based on the closing date. Each party pays only for the portion of the year they own the property.

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