PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Proration is the allocation of a periodic income or expense between buyer and seller according to the portion of the period each party owns or occupies the property and the closing convention stated in the problem.
Real Estate Calculations
Closing calculations
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Proration mean?
Proration is the allocation of a periodic income or expense between buyer and seller according to the portion of the period each party owns or occupies the property and the closing convention stated in the problem.
How do you separate the nearest exam answer?
Accrued items are paid in arrears, so the seller commonly owes the buyer a share through closing. Prepaid items can produce the opposite credit and debit.
What changes or stays the same in Georgia?
Use the day-count method and ownership-of-closing-day convention supplied by the exam question or contract. Do not assume every Georgia problem uses the same convention.
Annual taxes are unpaid and the seller owns through the stated closing day. The seller is debited and the buyer credited for the seller's share.
Candidates often calculate the amount correctly and then reverse the debit and credit.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
Annual property taxes of $3,650 are unpaid and will be paid by the buyer at year end. Closing is June 30, the seller owns the closing day, and the problem uses a 365-day year. What is the proration entry?
- A
Debit seller $1,810, credit buyer $1,810
- B
Debit buyer $1,810, credit seller $1,810
- C
Debit seller $1,840, credit buyer $1,840
- D
Debit seller $3,650, credit buyer $3,650
The seller owned the property from January 1 through June 30, which is 181 days. At $10 a day the seller's share is $1,810, charged to the seller and credited to the buyer, who will pay the whole bill later. Reversing the debit and credit is the most common mistake, and $1,840 is the buyer's own share.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Real Estate Calculations complete lesson
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