Proration (Closing Adjustments)
Proration is the allocation of shared-period revenues or expenses (such as taxes, common charges, or rents) between the parties as of the closing cutover. It converts ongoing periodic obligations into closing credits/debits.
- Where it applies
- General / NYC
- When it comes up
- Closing
- Property types
- All sales (especially income-producing assets; co-ops/condos for recurring charges)
Read more in the Knowledge Base
Closing Process
- Closing (Settlement)
- Closing Disclosure (CD)
- Contract Deposit (Earnest Money) Escrow
- Escrow
- Escrow Agent
- Estoppel Certificate
- Holdback Escrow
- Loan Estimate (LE)
- Mansion Tax (Additional NYS Transfer Tax)
- Mortgage Recording Tax (NYC)
General information, not legal, tax or financial advice.