Title
Proration
A concise definition for the California Real Estate Exam study guide.
Definition
Allocation of income or expense items between buyer and seller based on the relevant time period and the contract terms. Taxes, rents, and HOA dues are commonly prorated at closing.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 4: Transfer, Title, Escrow & Closing →