George Clements ~ Greenville, SC Real Estate
Paragraph 10 is entitled "ADJUSTMENTS" and looks something like this:
10. ADJUSTMENTS: Taxes, fuel(s), rents, other fees associated with rentals, including homeowner’s association fees, will be adjusted as of the date of closing. Tax prorations are based on the tax information available on the date of closing and are to be prorated on that basis. Prorations at closing shall be final.
This section basically says that the taxes and home owner's association fees for the year will be divided up between the purchaser and the seller based on the amount of time they had the property for the year. If taxes on a property were $1200.00 and the seller lived in the house for 3 months of the year, then the seller would pay $300 towards the taxes and the purchaser would pay the rest. The closing attorney will estimate what all this will be and credit the purchaser at closing for the amount the seller would owe.