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In a sale, those property expenses that are divided betweenbuyer and seller based on the...

In a sale, those property expenses that are divided between buyer and seller based on the amount of time in the year that each owned the property are called

a. proations

b. compromise

c. closing fees

d. mutual loss

Solutions

Expert Solution

option (a) i.e. Proations is the correct answer.

Proration refers to the allocation or dividing certain money items at the closing on the basis of duration of use by each person (buyer and seller). The key to remember about prorations is that the person who uses it needs to pay for it.

jeff jeffy answered 2 years ago
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