Chapter 14

Prorations

Taxes, dues, rent and interest split at closing

An explorable chapter on prorations for the real estate exam: the 365-day and 360-day year, items the seller prepaid, rent the seller collected, security deposits, and interest on an assumed loan, with who is debited and credited.

1. 14.1
   365 days or 360The question names the year; use it
2. 14.2
   Items the seller prepaidThe buyer pays back the buyer's days
3. 14.3
   Rent and security depositsThe seller collected it; the buyer earns part of it
4. 14.4
   Interest on an assumed loanMortgage interest is paid in arrears
5. 14.5
   Count the days yourselfMost proration mistakes are counting mistakes
6. 14.6
   Which way does it go?Who has paid, and for whose days
7. 14.7
   One closing, every billCut each bill at closing and send the piece where it belongs

1 interactive 3D scene · 4 slider tasks · 3 practice sets · 14 questions