Since the seller often has utilized the property for a portion of the year in which the transaction is being made, certain costs associated with the property will be prorated at the closing. All of the following items are subject to being prorated EXCEPT:
A) Broker commission
B) Prepaid rent
C) Property tax
D) Mortgage interest

Question

Quizplus · Accepted Answer

Broker commission is not an expense associated with the property itself, but rather a fee paid for the services of the broker. Therefore, it is not subject to proration at closing. The other options, prepaid rent, property tax, and mortgage interest, are all expenses associated with the property and are subject to proration at closing.

Since the Seller Often Has Utilized the Property for a Portion