Definition
The division of expenses such as taxes and HOA dues between buyer and seller as of the closing date.
Example
Property tax proration credited the buyer $2,140 for the seller's portion of the year.
Related terms
Frequently asked questions
What does Proration mean in real estate?
The division of expenses such as taxes and HOA dues between buyer and seller as of the closing date.
How is Proration used in practice?
Property tax proration credited the buyer $2,140 for the seller's portion of the year.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.