Illinois Real Estate Exam Practice Question
Which of the following items would be prorated at closing with the credit going to the seller?
Correct Answer: B
Rationale: Proration at closing ensures that expenses are fairly allocated between the buyer and seller based on the closing date.
Option B, prepaid property taxes, is prorated because the seller has already paid taxes for a period that extends beyond the closing date. Therefore, the buyer must reimburse the seller for the portion of taxes covering the time after closing.
Option A, accrued interest on an assumed mortgage, is typically the buyer's responsibility since it pertains to the buyer's future payments.
Option C, earnest money, is a deposit made by the buyer and is not prorated; it goes directly to the seller as part of the purchase price.
Option D, unearned rent collected in advance, is usually credited to the buyer, as they will benefit from the rental income after closing.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now