f. The broker will also pay the following expenses for Eric and will be reimbursed at the closing: Attorney's fee $250.00 Deed recording fee 6.00 Mortgage recording fee 10.00 Mortgage note stamps (tax) 682.50 Intangible taX on mortgage 390.00 Solution: Four items must be prorated between the seller and buyer: 1. Interest for the month of June for the existing mortgage. 2. Hazard insurance policy for the calendar year of 2010. 3. Rent for the month of June. 4. Property taxes for the calendar year of 2010. The prorations are as follows: Interest is paid in arrears, by the buyer. Thus the seller owes the buyer for the seller's share of the bill: Seller's portion of interest: (7/30) X 745 = $173.83 Hazard insurance was prepaid by the seller for the calendar year. Thus, the buyer owes the seller for the buyer's share of the premium: Buyer's portion of the hazard insurance premium: (207/365) X 850 = $482.06 Monthly rent was paid in advance to the seller. Thus, the seller owes the buyer his share of the rent: Buyer's portion of the monthly rent: (23/30) X 1,250 = $958.33 Property taxes are paid in arrears, by the buyer. So the seller owes the buyer for the seller's portion of the payment: Seller's portion of the 2010 property taxes: (158/365) X 2,200 = $952.33 These prorations, together with the other information above, result in the closing cfni-nmnnf an Alert] atrnrl