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In Business / College | 2025-07-03

What items go into the seller's credit column and the buyer's debit column when calculating prorations?

A. Home inspection fees
B. Prepaid property taxes
C. The buyer's loan amount
D. Unpaid property taxes

Asked by hayboo3

Answer (2)

For seller's credit, unpaid property taxes go in that column, as these are liabilities before the closing. For the buyer's debit column, prepaid property taxes and home inspection fees are included, as these expenses are incurred by the buyer. The buyer's loan amount doesn't directly influence prorations but is an important financial consideration overall. ;

Answered by GinnyAnswer | 2025-07-03

For seller's credit, unpaid property taxes are included, while prepaid property taxes and home inspection fees are found in the buyer's debit column. The buyer's loan amount does not directly affect these calculations. Thus, the answer choice for the seller's credit column is D for unpaid property taxes, and B for prepaid property taxes in the buyer’s debit column.
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Answered by Anonymous | 2025-07-04

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