The process of dividing ongoing expenses between the buyer and seller at the closing is called?

The correct response is the process of prorating. Prorating refers to the allocation of ongoing expenses, such as property taxes and utility bills, between the buyer and seller at closing. This method ensures that both parties are only responsible for their share of expenses based on the time they owned or occupied the property within the billing period.

For instance, if the seller owned the home for part of the month before closing, the prorated amount would calculate how much of the ongoing expenses correspond to that period, ensuring that the buyer pays only for the ownership period after closing. This practice is essential in real estate transactions to provide a fair financial arrangement and avoid disputes over shared expenses.

In contrast, assessing typically relates to determining the value of a property for taxation and would not involve dividing expenses at closing. Collecting expenses might refer to gathering necessary financial information or payment but does not imply the division of costs. Accounting refers more broadly to financial record-keeping and reporting rather than the specific allocation of expenses in real estate transactions. Thus, prorating is the precise term that reflects the intended process.