Proration

Calculating Proration

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On the real estate licensing exam, you may encounter a proration question.  Prorations occur because not every expense or income can be distributed at closing.  For example, the seller may have already gotten a full month’s rent from a tenant before the closing.  Or the buyer might have to pay real estate taxes at the … Read more

Real Estate Math Problem – Proration on HUD-1

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One of the most confusing types of real estate math problem you will encounter is determining what portion of expenses the seller and buyer owes. While most of these calculations are taken care of by the settlement company, it is a good idea for any real estate agent to know how it is calculated. Most … Read more