Real estate glossary
Prorations
Also called: Prorated taxes
Splitting ongoing costs like property taxes or HOA dues between buyer and seller based on the closing date.
Some bills cover periods that straddle the closing date — property taxes, HOA dues, sometimes rent on a tenant-occupied property. Prorating divides those amounts so each side pays only for the days they own the home.
Depending on what has already been paid, a proration shows up on your closing statement as either a charge or a credit.
What it means for you as a seller
If you paid your property taxes ahead, you may get a credit back at closing. Check the proration lines on your statement.
Related terms
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .