Direct answer
What does Proration mean?
Allocation of income or expense between parties for their respective periods of ownership or responsibility.
Exam cue: Identify whether the item is paid or unpaid, who owns the closing day and which day-count convention the question supplies.
What does it look like in a question?
New York example
At closing, prepaid rent is divided between seller and buyer based on the stated closing-day rule.
Common exam trap
What should you not confuse it with?
A debit or credit cannot be chosen correctly until you know who has paid and who receives the benefit.
Related real estate math terms
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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Put the term back into its full subject.
A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.