Question

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 proration except_______.

Answer 1

B. broker commission.

Step-by-step explanation:

Proration refers to an offer of either cash or equity during an acquisition that the other party can choose from. Based on this information provided it can be said that all of the items are subject to proration except for broker commission. Since this is a payment that the broker get's either way after the deal closes and cannot be given away.