Escrow & Title
What is 'prorating' at a Pennsylvania real estate closing?
AThe process of calculating the broker's commission as a percentage of the sale price
BThe allocation of ongoing property expenses — such as taxes, rents, or HOA fees — between buyer and seller based on the closing date✓ Correct
CThe Pennsylvania procedure for contesting a property's assessed value
DThe distribution of multiple offers received at the same time by the listing agent
Explanation
Prorating is the process of fairly allocating ongoing expenses or income between buyer and seller based on the closing date. Common items prorated at Pennsylvania closings include real estate taxes (most counties pay in arrears), prepaid rents (if investment property), HOA dues, and utility escrows.
Related Pennsylvania Escrow & Title Questions
- In Pennsylvania, which professional typically conducts the real estate closing and handles the disbursement of funds?
- A Pennsylvania title insurance commitment (binder) is issued:
- In an escrow arrangement, the escrow agent's duties include:
- Title insurance premiums in Pennsylvania are paid:
- In Pennsylvania, the transfer tax is:
- What does a title search typically examine?
- A Pennsylvania title search examines which public records to verify ownership and encumbrances?
- A HUD-1 Settlement Statement has been replaced for most residential closings by which document?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →