Escrow & Title
In South Dakota, 'prorations' at closing ensure that:
ABoth parties pay equal shares of all closing costs
BRecurring costs (taxes, rents, HOA fees) are fairly divided between buyer and seller based on the closing date✓ Correct
CThe broker's commission is split between the listing and selling agents
DThe buyer receives a credit equal to the seller's mortgage payoff
Explanation
Prorations allocate ongoing property expenses (taxes, prepaid rents, HOA dues, etc.) between buyer and seller based on their respective ownership periods, with the closing date as the dividing point.
Related South Dakota Escrow & Title Questions
- In South Dakota, when a buyer purchases a property subject to an existing mortgage, the buyer:
- The purpose of a closing escrow in South Dakota is to:
- In South Dakota, a 'certificate of title' issued under the Torrens system is:
- A South Dakota lender takes an assignment of rents clause in their commercial mortgage. This clause provides that if the borrower defaults:
- A 'satisfaction of mortgage' (release of mortgage) in South Dakota is recorded when:
- In South Dakota, which of the following would NOT be found in a title search?
- A South Dakota title company discovers an easement that was not disclosed to the buyer. If the title insurance policy covers easements, the buyer:
- In a real estate closing, proration is used to:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →