Escrow & Title
Vermont's 'prorations' at closing are used to:
ACalculate the broker's commission
BFairly allocate prepaid or accrued expenses (taxes, HOA fees, rents) between buyer and seller as of the closing date✓ Correct
CDetermine the property's appraised value
DSet the loan-to-value ratio
Explanation
Prorations ensure that periodic expenses (property taxes, prepaid insurance, homeowner association fees, rents) are divided fairly between buyer and seller based on their respective periods of ownership through and from the closing date.
Related Vermont Escrow & Title Questions
- Vermont's 'partial release' from a blanket mortgage occurs when:
- In Vermont, to be valid for recording, a deed must be:
- Vermont's FIRPTA withholding obligation falls on the:
- A chain of title in Vermont refers to:
- A Vermont broker who commingles client trust funds with their own operating account is:
- Vermont's recording of a mortgage provides:
- Vermont's 'survey endorsement' to a title policy may remove the standard survey exception if:
- Vermont's 'HUD-1 Settlement Statement' has largely been replaced by:
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →