Escrow & Title
In a Texas real estate transaction, 'proration' at closing refers to:
AReducing the sales price proportionally
BDividing ongoing expenses (taxes, HOA dues, rents) between buyer and seller as of the closing date✓ Correct
CThe title company's fee for closing services
DThe percentage of the earnest money applied to closing costs
Explanation
Proration is the division of ongoing costs and revenues (such as property taxes, HOA dues, prepaid rents, and utility deposits) between the buyer and seller based on the portion of the period each party owns the property. The closing date determines who owes what. Texas customarily prorates to the day of closing.
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