Contracts
In a Rhode Island real estate contract, what does 'prorations' at closing typically include?
AThe seller's commission adjustment
BDivision of property taxes, homeowner's association fees, and rents (if any) between buyer and seller based on the closing date✓ Correct
CThe buyer's down payment adjustment
DThe appraisal fee split between parties
Explanation
Prorations at closing divide recurring property expenses (taxes, HOA fees, prepaid rents) between buyer and seller based on their respective ownership periods in the transaction year. This ensures each party pays only for their period of ownership.
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