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The apportionment of tax payments at closing is known as__________

1 Answer

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Final answer:

The apportionment of tax payments at closing is called prorations, which divides property taxes and other costs between the buyer and seller according to their ownership periods.

Step-by-step explanation:

The apportionment of tax payments at closing is known as prorations. This term refers to the process where property taxes, and possibly other ongoing expenses like utilities and association fees, are divided between the buyer and seller at the time of property transfer.

The aim is to ensure each party pays for only the portion of the costs that corresponds to their period of property ownership. Typically, this is calculated on a per diem basis from the annual tax amount, ensuring fairness and accuracy in the division of payments.

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User Bowlerae
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