Closing ProcessHomebuying Glossary
Proration
Splitting a recurring cost, like property taxes, between buyer and seller based on their ownership dates.
In plain English
Proration divides shared costs — most commonly property taxes and HOA dues — proportionally between the buyer and seller based on how many days of the billing period each of you actually owned the home.
Why it matters
Prorated amounts show up as credits or charges on your closing statement — understanding them helps the numbers make sense rather than looking like a mistake.
Where you'll run into it
Guides and tools on TheBuyingPath that cover proration in context.
Related terms
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