Escrow & Title
Proration at closing ensures that:
ABoth parties pay equal closing costs
BProperty taxes and HOA fees are divided between buyer and seller based on the closing date✓ Correct
CThe lender's title insurance premium is split between lender and buyer
DThe real estate commission is evenly divided
Explanation
Proration divides ongoing expenses (property taxes, HOA dues, utilities, rents, etc.) between buyer and seller based on the closing date. The party who owns the property on a given day is responsible for that day's expense.
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