These costs are typically paid for by the buyer, but can be reimbursed by the seller. Since the set day for the mortgage to be paid typically isn’t the same day that closing occurs, an adjusted payment and interest is calculated based on the date of closing and when the next payment will be due.

These costs can be paid by the buyer, the seller, and are only paid if the home will be part of a Homeowner’s Association. Much like pro-rata property taxes, the costs are calculated based on the portion of the year that the home will actually be owned since closing rarely happens on the day that the costs are assessed.

Pro-Rata Property Taxes can be paid by the buyer, the seller, or both and reflect the fact that most houses don’t go into closing on the same day that property taxes are assessed. Because of this, taxes are calculated based on the portion of the year that the house will actually be owned.