Which party is credited for the proration during closing?

The buyer is credited for the proration during the closing process, as they are typically the party that will take over the property and assume responsibility for certain costs, like property taxes and utility bills, from the date of closing onwards. Proration is the method used to allocate expenses and income between both the seller and buyer for the period they own the property during a transaction.

At closing, any property-related expenses incurred up to that date must be divided fairly, reflecting how long each party owned the property during the billing cycle. Since the buyer becomes the new owner and is responsible for ongoing payments, it makes sense for them to receive credit for any prepaid expenses that cover time after the sale is finalized.

The seller could also have a stake in this process, but it is ultimately the buyer who will continue to incur these costs moving forward. Other parties involved in the transaction, such as the escrow agent, facilitate the process but do not assume direct responsibility for the costs.