Title: Calculate proration items.
Course: Real Estate (12154) > Section: Closing the Transaction

Calculation should incorporate proration of seller and buyer items, including

- loan interest
- per diem
- insurance
- fuel
- utility bills
- taxes
- homeowners association (HOA) fees
- rents
- prepaid items.

DPOR correlation: 18VAC135-20-400. 19 (Title closing)

Process/Skill Questions:

- How are prorated costs calculated?
- Why are costs prorated?
- What happens if the contract does not cover prorations?
- How are prorations listed on the buyer’s closing statement?
- Who determines the prorated amount?
- Who approves the prorations?
- Are the prorations negotiable? Which ones?