RE Contracts Ch. 13 Prorations

  1. What is prorations?
    -the split of taxes and insurance between the buyer and seller depending on the closing date.
  2. When are prorations calculated?
    at the closing date; closing date is added on the sellers side
  3. Who is the division calculated by?
    the title company's computer and shown on the HUD-1 closing statement on closing
  4. Seller must pay up when?
    at closing, extra taxes at end of year
  5. Tax prorations are usually done from estimates of the... (for the first 9 months)
    coming years taxes.
  6. If the taxes prove to be higher
    the seller must pay up by the end of the year
  7. When are the tax bills released?
  8. Splitting the expenses between buyer and seller can be done on a ________ or _______ basis
    • -monthly
    • -daily
  9. A Banker's year is what?
    • year is 360 days
    • -month is 30 days 
    • July 1st is half the year (180 days)
  10. A Calendar year is what?
    • -has 365 or 366 days a year
    • -normal days in months
  11. Who pays who at closing depends on whether costs are paid in ________ or in _____.
    • -arrears
    • -advance
Card Set
RE Contracts Ch. 13 Prorations
contract prorations