What Are Prorations at Closing?

Prorations divide ongoing property costs fairly between buyer and seller based on who owns the home on which days. They make sure each party pays only for their share of the period.

Property Taxes

California property taxes are paid in installments. At closing, taxes are prorated so the seller covers their days of ownership and the buyer covers theirs.

HOA Dues

If the home is in an HOA, monthly or quarterly dues are split to the closing date, with the seller credited or debited for the difference.

Other Prorated Items

Depending on the deal, rents on an occupied property, utilities, or prepaid services may also be prorated between the parties.

Where You'll See Them

Prorations appear as credits and debits on your settlement statement, which we review together before you sign.

Questions About Your Numbers?

Reach out and I'll walk through your settlement statement so every proration and credit makes sense before closing.