Final answer:
At real estate closings, HOA fees, property taxes, and special assessments are usually prorated, but transferred homeowners insurance is not.
Step-by-step explanation:
At real estate closings, typically HOA fees, property taxes, and special assessments are prorated, while transferred homeowners insurance is not usually prorated.
HOA fees are typically prorated at closings based on the number of days that the seller owned the property during the month. For example, if the seller owned the property for 15 days during the month and the HOA fee for the month is $100, the buyer would be responsible for paying $50.
Property taxes are also prorated at closings. The seller is responsible for paying property taxes up until the day of closing, and the buyer is responsible for paying property taxes from the day of closing forward. This is calculated based on the total annual property tax amount divided by the number of days in the year, multiplied by the number of days each party owns the property.
Special assessments, which are additional fees levied by the homeowners association for specific purposes such as repairs or improvements, are prorated at closings in a similar manner as property taxes.
On the other hand, transferred homeowners insurance is not typically prorated at closings. The buyer usually takes over the existing insurance policy in place at the time of closing and pays the full annual premium.