PRORATION EXAMPLES

Expense Paid in Advance: Homeowners’ Association Dues

Assumptions:

1. Annual dues are $100.

2. Dues due December 31st each year, for the following year.
3. Sale transpires on March 31st.
4. Assume 365-day year.

Expense Paid in Arrears: Ad Valorem Taxes

Assumptions:

1. Annual taxes have been estimated at $1,500.

2. Taxes due December 31st each year, for the same calendar year.
3. Sale transpires May 14th.
4. Assume 365-day year.