Escrow & Title
In Tennessee, 'prorations' at closing are used to:
ACalculate the broker's commission
BDivide ongoing expenses and income (such as property taxes and rents) between buyer and seller based on the closing date✓ Correct
CDetermine the purchase price adjustment
DAllocate closing costs between parties
Explanation
Prorations divide ongoing costs and income (property taxes, HOA dues, rent) between buyer and seller as of the closing date, ensuring each party pays only for their portion of the ownership period.
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