QUICK ANSWER
For Florida real estate exam proration, use this formula: daily rate equals amount divided by days in the period, then proration equals daily rate times days owed. The arithmetic is usually easy. The point is deciding the credit direction. Unpaid Florida property taxes usually create a seller debit and buyer credit. Prepaid seller expenses, such as homeowners association (HOA) dues or assumed insurance, usually create a buyer debit and seller credit.
EXAM PREP ONLY
This post explains how proration appears on the Florida real estate sales associate exam. It is not legal, tax, lending, appraisal, brokerage, title, insurance, closing, or professional advice. For a real transaction or real-world decision, verify current requirements with the official source or consult a qualified licensed Florida professional.
Proration questions are not hard because the math is advanced.
They are hard because the Florida exam can hide three decisions inside one short stem: what is being split, how many days count, and which side receives the credit. A candidate can calculate the right dollar amount and still miss the question by putting it on the wrong side of the closing statement.
Snippet answer: Florida proration means splitting a recurring expense or income item between buyer and seller by time owned or time benefited. The daily-rate formula gives the amount. The paid-in-arrears or paid-in-advance rule gives the credit direction.
This guide teaches the setup you need for property taxes, rent, HOA dues, insurance, mortgage interest, and mixed closing questions. The Department of Business and Professional Regulation (DBPR) exam outline places closing math inside Real Estate Related Computations and Closing of Transactions. Pair this guide with the Florida real estate exam math formulas guide, the seller net closing math guide, and the free proration calculator when you want to drill variations. If the day-count ratio is where you slip, set it up as a proportion with cross multiplication, or place the two-step daily-rate setup visually with the T-bar method.
What this guide covers
- Florida proration formula
- Buyer credit vs seller credit
- Day of closing rules
- Florida property tax proration
- Paid-in-advance vs paid-in-arrears items
- 365-day vs 360-day proration
- Step-by-step method
- Property tax proration examples
- Prepaid and collected item examples
- Mixed and 360-day proration examples
- Common traps
- Quick reference card
- How to study proration
- Florida exam-style practice questions
- Frequently Asked Questions
PRACTICE THE SETUP
Train the direction rule before you try to go fast.
Use the free proration calculator to change the closing date, annual amount, paid-in-advance item, paid-in-arrears item, and closing-day convention. Then use Math Coach in Pass Florida when you want proration mixed with the other Florida math calculation types.
Florida proration formula
Snippet answer: The Florida real estate exam proration formula is daily rate equals item amount divided by days in the period, then proration equals daily rate times the number of days owed.
Use this two-line setup:
Daily rate = amount / days in the period
Proration = daily rate x days owed
The period depends on the item:
| Item in the stem | Common exam period |
|---|---|
| Annual property taxes | 365-day year unless the stem says otherwise |
| Annual hazard insurance | 365-day policy year unless the facts give a different policy period |
| Monthly rent | Actual days in the month |
| Monthly HOA or condo dues | Actual days in the month |
| Quarterly HOA or condo dues | Actual days in the quarter |
| Mortgage interest | 360-day banker's year if the stem says so |
The stem controls. If the question says 360-day year, use 360. If it says exact days, count exact days. If it says the buyer owns the day of closing, put the closing day with the buyer.
Exam Tip
Write the formula and the direction before calculating. Most wrong answers in proration are not arithmetic errors. They are direction errors or closing-day errors.
Buyer credit vs seller credit
Snippet answer: Credit the party who is owed money or benefit. If the seller owes the buyer, it is seller debit and buyer credit. If the buyer owes the seller, it is buyer debit and seller credit.
Ask one question before you choose the answer:
Who has money, use, or benefit that belongs to the other party?
| Scenario | What happened | Usual closing statement direction |
|---|---|---|
| Current property taxes are unpaid | Seller used the property before closing, but buyer will later pay the bill | Seller debit, buyer credit |
| Seller collected rent for the full month | Seller is holding rent for days buyer will own | Seller debit, buyer credit |
| Seller prepaid HOA dues | Buyer receives future association benefit seller already paid for | Buyer debit, seller credit |
| Seller prepaid insurance and buyer assumes policy | Buyer receives unused coverage seller already paid for | Buyer debit, seller credit |
| Seller owes unpaid HOA dues | Seller used the association benefit but has not paid | Seller debit, buyer credit |
If that table feels backward, slow down. You are not asking who paid at the closing table first. You are asking who should reimburse whom so each side pays only for its own time or receives only its own income.
Day of closing rules
Snippet answer: If a Florida proration stem states who owns the day of closing, use that instruction. If the stem is silent, common Florida residential contract forms prorate recurring items as of the day before closing, which puts the closing day with the buyer. That day-before-closing split is a contract-form convention, not an official DBPR exam rule, so the stem or your course's stated method always controls first.
Work the closing day in this order:
- Use the stem first.
- If the stem gives a contract convention, follow that convention.
- If the stem is silent, common Florida contract forms such as the Florida Realtors/Florida Bar (FR/BAR) "AS IS" Residential Contract generally prorate recurring items as of the day before closing.
- For exam practice, say out loud which side owns the closing day before counting.
Two examples show why this matters:
| Closing date | Convention | Seller days in March |
|---|---|---|
| March 31 | Seller owns day of closing | 90 days |
| March 31 | Buyer owns day of closing | 89 days |
One day can change the answer choice. The test writer knows that, so wrong answer options often reflect the other closing-day convention.
Florida property tax proration
Snippet answer: Florida property tax proration on the exam usually treats current-year taxes as unpaid and paid in arrears, so the seller gives the buyer a credit for the seller's share of the current-year tax.
Florida property tax timing supports that exam habit. F.S. 192.042 assesses real property as of January 1. F.S. 197.122 says property taxes are a first lien from January 1 and owners are responsible for paying annually. F.S. 197.333 says taxes are due November 1 or soon after the tax collector receives the certified roll, and they become delinquent April 1 of the following year, subject to the statutory mailing rule.
For exam-proration purposes, that usually means:
| Fact pattern | Exam meaning |
|---|---|
| Current-year taxes are unpaid | Buyer may later pay a bill that includes seller's ownership period |
| Seller owned January 1 through closing | Seller owes buyer for seller's share |
| Taxes are paid in arrears | Seller debit, buyer credit |
| Stem says taxes are already paid | Read carefully. The direction may change if buyer benefits from seller's payment |
Do not add Florida early-payment discounts unless the question asks for them. F.S. 197.162 creates a discount schedule for early payment, but most exam proration stems give you the annual tax figure to use.
Paid in advance vs paid in arrears
Snippet answer: Paid in arrears usually means the person who already used the item owes the other side. Paid in advance usually means the person receiving the future benefit reimburses the person who prepaid.
Use this comparison:
| Wording in the stem | Meaning | Direction habit |
|---|---|---|
| Taxes are unpaid | Seller used property before closing and has not paid current-year tax | Seller credits buyer |
| Interest is paid in arrears | Buyer may make a later payment covering seller's days | Seller credits buyer |
| Seller collected rent in advance | Seller has money for buyer's future ownership days | Seller credits buyer |
| Seller prepaid insurance | Buyer receives unused coverage seller already bought | Buyer credits seller |
| Seller prepaid HOA dues | Buyer receives future association benefit seller already bought | Buyer credits seller |
The word "advance" is not enough by itself. Rent collected in advance and HOA paid in advance can point in opposite directions because rent is income held by the seller, while HOA is an expense benefit already paid by the seller.
365-day vs 360-day proration
Snippet answer: Use 365 days for calendar-year property tax and annual policy examples unless the stem says otherwise. Use a 360-day banker's year only when the question tells you to use a 360-day or 30/360 method.
The Florida exam can give you both patterns:
| Day-count method | How it works | Typical use in exam prep |
|---|---|---|
| 365-day year | Annual amount divided by 365 | Property taxes, insurance, many calendar-year examples |
| Actual month | Monthly amount divided by actual days in that month | Rent, monthly HOA dues |
| Actual quarter | Quarterly amount divided by actual days in that quarter | Quarterly HOA or condo dues |
| 360-day banker's year | Annual amount divided by 360, often with 30-day months | Mortgage interest when stated |
The current DBPR Candidate Information Booklet says calculators must be silent, hand-held, battery-operated, nonprinting, and without an alphabetic keypad, but it also allows financial calculators with an alpha button, naming the HP 12, 17, 18, and 19 and the TI BA series. Still, the calculator will not choose 365 or 360 for you. That is the candidate's job.
For calculator rules, pair this page with the best calculator for the Florida real estate exam.
Four-step proration method
Snippet answer: To solve a Florida proration problem, label the item, choose the period, count the days, then set the credit direction.
Use the same order each time:
- Label the item. Property tax, rent, HOA dues, insurance, mortgage interest, assessment, or mixed closing item.
- Choose the period. Annual, monthly, quarterly, 365-day, 360-day, or stated period.
- Count days. Count seller days or buyer days based on the stem's closing-day convention.
- Set direction. Decide who has money or benefit that belongs to the other side.
Do not calculate first and decide direction later. That is how candidates land on the right number but choose the wrong answer choice.
Property tax proration examples
Snippet answer: Property tax proration examples usually start with an annual tax amount, a 365-day year, seller ownership days, and a seller-credit-to-buyer direction when current-year taxes are unpaid.
Example 1: Property tax proration
Facts: Closing is July 15. Annual property taxes are $4,380. Taxes are paid in arrears. Seller owns the day of closing. Use a 365-day year.
Daily rate:
$4,380 / 365 = $12.00 per day
Seller days:
| Month | Days |
|---|---|
| January | 31 |
| February | 28 |
| March | 31 |
| April | 30 |
| May | 31 |
| June | 30 |
| July 1 through July 15 | 15 |
| Total | 196 |
Seller share:
$12.00 x 196 = $2,352.00
Direction: taxes are unpaid and paid in arrears, so seller credits buyer.
Answer: Seller debit $2,352.00. Buyer credit $2,352.00.
Example 2: Mid-year property tax with uneven taxes
Facts: Closing is September 22. Annual property taxes are $5,475. Taxes are paid in arrears. Seller owns the day of closing. Use a 365-day year.
Daily rate: $5,475 / 365 = $15.00
Seller days: Jan through Aug = 243 days
Sep 1 through Sep 22 = 22 days
243 + 22 = 265 seller days
Seller share: $15.00 x 265 = $3,975.00
Direction: seller credits buyer because current-year taxes are unpaid.
Answer: Seller debit $3,975.00. Buyer credit $3,975.00.
Example 3: Closing after last year's taxes were paid
Facts: Closing is February 10. Seller paid last year's property taxes in November. Current-year taxes are estimated at $3,650. Seller owns the day of closing. Use a 365-day year.
Do not prorate last year's already-paid tax bill unless the question asks about it. The proration item is normally the current tax year.
Daily rate: $3,650 / 365 = $10.00
Seller days: Jan 1 through Feb 10 = 41 days
Seller share: $10.00 x 41 = $410.00
Direction: current-year taxes are unpaid, so seller credits buyer.
Answer: Seller debit $410.00. Buyer credit $410.00.
Example 4: Property tax with homestead math before proration
Facts: Closing is August 1. Assessed value is $200,000. School millage is 8 mills. Non-school millage is 12 mills. The property has Florida homestead exemption. Seller owns the day of closing. Use a 365-day year.
This example first calculates the annual tax, then prorates it. Many classroom and exam-prep questions use the simplified homestead split: the first $25,000 applies to all property taxes, and the second $25,000 applies to non-school taxes only. For real 2026 Florida property-tax estimates, the Department of Revenue lists the maximum additional non-school homestead exemption at $26,411, not a flat $25,000.
School taxable value:
$200,000 - $25,000 = $175,000
$175,000 x 0.008 = $1,400
Non-school taxable value:
$200,000 - $50,000 = $150,000
$150,000 x 0.012 = $1,800
Annual tax:
$1,400 + $1,800 = $3,200
Proration:
Daily rate: $3,200 / 365 = $8.7671
Seller days: Jan 1 through Aug 1 = 213 days
Seller share: $8.7671 x 213 = $1,867.40
Direction: current-year taxes are unpaid, so seller credits buyer.
Answer: Seller debit $1,867.40. Buyer credit $1,867.40.
For the full setup, use the Florida homestead exemption exam guide and the millage math guide.
THE ARITHMETIC IS EASY. THE DIRECTION ISN'T.
Most missed proration points are credit-direction errors, not math errors.
Daily-rate-times-days is the easy part; deciding buyer-credit vs seller-credit under time is where points go. Math Coach drills proration alongside the other 14 Florida calculation types, and Trap Library names whether a miss was the day count, the closing-day side, or the direction. Pass Florida is exam prep only for one $39.99 purchase. No subscription. No copied exam questions.
Prepaid and collected item examples
Snippet answer: Prepaid expense examples usually credit the seller, while rent collected by the seller for buyer ownership days usually credits the buyer.
Example 5: Insurance proration
Facts: Seller bought a 1-year hazard insurance policy for $1,825 on March 1. Closing is October 15. Buyer is assuming the policy. Seller owns the day of closing. Use a 365-day year.
Insurance was prepaid by the seller. The buyer receives unused coverage.
Seller used: Mar 1 through Oct 15 = 229 days
Buyer receives: 365 - 229 = 136 days
Daily rate: $1,825 / 365 = $5.00
Buyer share: $5.00 x 136 = $680.00
Direction: buyer receives future coverage seller already bought, so buyer credits seller.
Answer: Buyer debit $680.00. Seller credit $680.00.
Example 6: HOA dues paid in advance
Facts: Quarterly HOA dues are $900, paid in advance on January 1, April 1, July 1, and October 1. Closing is August 20. Seller owns the day of closing.
Current quarter: July 1 through September 30 = 92 days.
Seller days: Jul 1 through Aug 20 = 51 days
Buyer days: 92 - 51 = 41 days
Daily rate: $900 / 92 = $9.7826
Buyer portion: $9.7826 x 41 = $401.09
Direction: seller already paid the quarter, so buyer credits seller.
Answer: Buyer debit $401.09. Seller credit $401.09.
Example 7: Rent proration
Facts: Property is rented. Tenant paid September rent of $1,500 to the seller on September 1. Closing is September 12. Seller owns the day of closing.
September has 30 days.
Seller days: Sep 1 through Sep 12 = 12 days
Buyer days: Sep 13 through Sep 30 = 18 days
Daily rent: $1,500 / 30 = $50.00
Buyer share: $50.00 x 18 = $900.00
Direction: seller collected rent that covers buyer's ownership days, so seller credits buyer.
Answer: Seller debit $900.00. Buyer credit $900.00.
Mixed and 360-day proration examples
Snippet answer: Mixed proration questions test whether you can keep separate item type, day count, ownership days, and credit direction when several prorations appear in one closing statement.
Example 8: Mixed closing proration
Facts: A property closes on May 18. Annual property taxes are $6,205. Seller prepaid a 1-year insurance policy for $2,190 starting January 1. Monthly HOA dues of $350 are paid in arrears. Seller owns the day of closing. Use a 365-day year.
Property tax:
$6,205 / 365 = $17.00
Jan 1 through May 18 = 138 seller days
$17.00 x 138 = $2,346.00
Direction: seller credits buyer
Insurance:
$2,190 / 365 = $6.00
Seller used 138 days
Buyer receives 227 remaining days
$6.00 x 227 = $1,362.00
Direction: buyer credits seller
HOA dues in arrears:
May has 31 days
$350 / 31 = $11.2903
Seller owns 18 days
$11.2903 x 18 = $203.23
Direction: seller credits buyer
Summary:
| Item | Seller debit | Buyer credit | Seller credit | Buyer debit |
|---|---|---|---|---|
| Property tax | $2,346.00 | $2,346.00 | ||
| Insurance | $1,362.00 | $1,362.00 | ||
| HOA dues | $203.23 | $203.23 |
The arithmetic stayed simple. The direction changed by item.
Example 9: Mortgage interest on a 360-day year
Facts: A buyer assumes the seller's mortgage with a balance of $180,000 at 7.0% annual interest, paid monthly in arrears. Closing is March 10. Seller owns the day of closing. The lender uses a 360-day banker's year. The buyer makes the full March interest payment on April 1. How much accrued interest does the seller owe at closing?
Annual interest: $180,000 x 0.070 = $12,600
Daily interest: $12,600 / 360 = $35.00 per day
Seller days: Mar 1 through Mar 10 = 10 days
Seller accrued: 10 x $35.00 = $350.00
Direction: interest is paid in arrears, and the buyer's April 1 payment covers the seller's March days. Seller reimburses buyer.
Answer: Seller debit $350.00. Buyer credit $350.00.
Example 10: Buyer owns day of closing
Facts: Closing is March 31. Annual property taxes are $3,650. Taxes are paid in arrears. Buyer owns the day of closing. Use a 365-day year.
Daily rate: $3,650 / 365 = $10.00
Seller days: Jan 1 through Mar 30 = 89 days
Seller share: $10.00 x 89 = $890.00
Direction: taxes are unpaid, so seller credits buyer.
Answer: Seller debit $890.00. Buyer credit $890.00.
If seller owned the closing day, the seller days would be 90 and the answer would be $900. That one-day difference is a common distractor.
Common proration traps
Snippet answer: The most common Florida proration mistakes are reversing paid-in-arrears direction, using the wrong day count, counting the closing day on the wrong side, and treating all paid-in-advance items the same way.
Trap 1: Reversing unpaid property taxes
Florida property tax questions often treat current-year taxes as unpaid. The seller used the property for part of the year, but the buyer may later pay the full bill. That is seller debit and buyer credit.
Trap 2: Using 360 when the stem says 365
Property tax and annual insurance examples often use 365. Mortgage interest can use 360 when the stem says banker's year or 30/360. Use the stated method.
Trap 3: Counting the closing day from habit
If the question tells you who owns the closing day, use the stem. If the question is silent, common Florida residential contract language generally prorates recurring items through the day before closing.
Trap 4: Treating rent and HOA dues the same
Rent collected in advance by the seller usually credits the buyer. HOA dues paid in advance by the seller usually credit the seller. One is income held by the seller. The other is a future benefit paid by the seller.
Trap 5: Prorating documentary stamps
Documentary stamp tax is not prorated. It is calculated on a deed or note and paid at closing. If a problem asks for documentary stamps, use the documentary stamps and closing costs guide or the documentary stamp tax calculator.
Quick reference card
Snippet answer: Use the quick card to label the item, choose the day count, count ownership days, then assign the credit to the party who is owed money or benefit.
| Question | Exam habit |
|---|---|
| What is being prorated? | Label the item first |
| Annual item? | Use stated year, often 365 |
| Monthly item? | Use actual days in the month |
| Quarterly item? | Count the actual days in the quarter |
| Seller owns day of closing? | Count closing day with seller |
| Buyer owns day of closing? | Count closing day with buyer |
| Stem silent on closing day? | Common Florida residential contracts prorate as of the day before closing |
| Taxes unpaid and paid in arrears? | Seller credits buyer |
| Seller prepaid future expense benefit? | Buyer credits seller |
| Seller collected future rent? | Seller credits buyer |
| Direction unclear? | Ask who has the other party's money or benefit |
Non-leap-year cumulative day count:
| Month end | Cumulative days |
|---|---|
| January 31 | 31 |
| February 28 | 59 |
| March 31 | 90 |
| April 30 | 120 |
| May 31 | 151 |
| June 30 | 181 |
| July 31 | 212 |
| August 31 | 243 |
| September 30 | 273 |
| October 31 | 304 |
| November 30 | 334 |
| December 31 | 365 |
How to study proration
Snippet answer: Study proration by changing one variable at a time: item type, closing date, day-count method, closing-day convention, then credit direction.
Do not study proration by rereading the same example. Repetition helps only when the variable changes.
Use this order:
- Start with unpaid property taxes in arrears.
- Change the closing date.
- Change who owns the day of closing.
- Change the annual tax amount.
- Add rent collected by seller.
- Add HOA dues prepaid by seller.
- Add insurance assumed by buyer.
- Add a 360-day mortgage-interest problem.
- Mix several items in one closing statement.
Use these next:
| Resource | When to use it |
|---|---|
| Free proration calculator | Check daily-rate and day-count setup |
| Math drill | Practice mixed Florida exam math under pressure |
| Florida real estate exam math formulas | Place proration inside the full formula map |
| Seller net closing math | See how seller-debit and seller-credit prorations affect net |
| Buyer funds needed at closing | See how prorations affect buyer cash to close |
| Simple interest and loan constant | Practice 360-day interest logic |
Florida exam-style practice questions
Snippet answer: Florida proration practice should test amount, day count, and direction in the same question, because that is where candidates lose points.
These are original Pass Florida practice questions. They are not copied or reconstructed from a live Pearson VUE exam.
Practice question 1
A property closes on April 30. Annual property taxes are $7,300. Taxes are paid in arrears. Seller owns the day of closing. Use a 365-day year. What is the property tax proration?
A. Seller debit $1,800.00; buyer credit $1,800.00
B. Seller debit $2,400.00; buyer credit $2,400.00
C. Seller credit $2,400.00; buyer debit $2,400.00
D. Seller debit $1,800.00; seller credit $600.00
Answer: B. Seller debit $2,400.00; buyer credit $2,400.00.
Why: Daily rate equals $7,300 divided by 365, or $20. Seller days January 1 through April 30 equal 120. Seller share is $20 times 120, or $2,400. Taxes are unpaid and paid in arrears, so seller credits buyer.
Practice question 2
Closing is June 30. Seller prepaid a 1-year hazard insurance policy of $1,825 starting January 1. Buyer is assuming the policy. Seller owns the day of closing. Use a 365-day year. What is the insurance proration?
A. Buyer credits seller $905.00
B. Seller credits buyer $920.00
C. Buyer credits seller $920.00
D. Seller credits buyer $905.00
Answer: C. Buyer credits seller $920.00.
Why: Daily rate equals $1,825 divided by 365, or $5. Seller used January 1 through June 30, which is 181 days. Buyer receives 184 unused days. $5 times 184 equals $920. Seller prepaid future coverage, so buyer credits seller.
Practice question 3
A rental property closes on November 10. The tenant paid $1,800 rent for November to the seller on November 1. Seller owns the day of closing. What is the rent proration?
A. Seller credits buyer $1,200.00
B. Buyer credits seller $600.00
C. Seller credits buyer $600.00
D. Buyer credits seller $1,200.00
Answer: A. Seller credits buyer $1,200.00.
Why: November has 30 days. Daily rent equals $1,800 divided by 30, or $60. Buyer owns November 11 through November 30, which is 20 days. $60 times 20 equals $1,200. Seller collected rent for buyer's ownership days, so seller credits buyer.
Practice question 4
Quarterly HOA dues of $600 were paid in advance by the seller on October 1. Closing is November 15. October through December has 92 days. Seller owns the day of closing. What is the HOA proration?
A. Seller credits buyer $300.00
B. Buyer credits seller $300.00
C. Seller credits buyer $293.48
D. Buyer credits seller $293.48
Answer: B. Buyer credits seller $300.00.
Why: Seller owns October 1 through November 15, which is 46 days. Buyer receives 46 days. The buyer receives half of the prepaid quarter, so buyer credits seller $300. Choice D uses the wrong buyer day count.
Practice question 5
Closing is March 31. Annual property taxes are $3,650. The buyer owns the day of closing under the contract. Taxes are paid in arrears. Use a 365-day year. What is the property tax proration?
A. Seller credit $890.00; buyer debit $890.00
B. Seller debit $900.00; buyer credit $900.00
C. Seller debit $890.00; buyer credit $890.00
D. Seller debit $910.00; buyer credit $910.00
Answer: C. Seller debit $890.00; buyer credit $890.00.
Why: Daily rate equals $3,650 divided by 365, or $10. Buyer owns the day of closing, so seller days stop at March 30. January 1 through March 30 equals 89 days. $10 times 89 equals $890. Taxes are paid in arrears, so seller credits buyer.
Practice question 6
A buyer assumes a seller's mortgage. The annual interest is $9,000, interest is paid in arrears, closing is April 12, seller owns the day of closing, and the lender uses a 360-day year. What interest amount does the seller owe the buyer?
A. $295.89
B. $300.00
C. $900.00
D. $9,000.00
Answer: B. $300.00.
Why: $9,000 divided by 360 equals $25 per day. Seller owns April 1 through April 12, or 12 days. $25 times 12 equals $300. The buyer will pay interest covering seller's days, so seller credits buyer.
Ready to drill proration the way the exam tests it?
Proration rewards setup, not speed. The candidates who improve are the ones who label the item, choose the period, count the days, and set direction before touching the calculator.
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Frequently Asked Questions
What is the proration formula for the Florida real estate exam?
The proration formula is daily rate equals amount divided by days in the period, then proration equals daily rate times days owed. After that, decide whether the result is buyer credit, seller credit, buyer debit, or seller debit.
Are Florida property taxes paid in advance or in arrears?
For exam-proration purposes, Florida property taxes are usually treated as paid in arrears. Current-year taxes are commonly unpaid at closing, so the seller credits the buyer for the seller's share unless the stem says something different.
Does the Florida real estate exam use 365 or 360 days for proration?
Use the method stated in the question. Property tax examples often use 365 days. Mortgage-interest examples can use a 360-day banker's year if the stem says so. Monthly rent and monthly HOA questions usually use actual days in the month.
Who owns the day of closing in Florida proration questions?
If the stem says who owns the day of closing, use that instruction. If the stem is silent, common Florida residential contract forms generally prorate recurring items as of the day before closing, which puts the closing day with the buyer.
How do I know whether to credit buyer or seller?
Ask who has money or benefit that belongs to the other party. If seller owes buyer for unpaid property taxes or rent collected for buyer's days, seller credits buyer. If buyer benefits from insurance or HOA dues seller prepaid, buyer credits seller.
Is rent proration the same as HOA proration?
The formula can be the same, but the direction can differ. Rent collected by the seller for the full month includes money that belongs to the buyer after closing. HOA dues prepaid by the seller include a future benefit the buyer receives after closing.
Are documentary stamps prorated?
No. Documentary stamps are not prorated. They are transaction taxes calculated on the deed or note. Use the documentary stamp calculator for that math.
Can proration appear in seller net or buyer funds questions?
Yes. Seller-debit prorations reduce seller net, seller-credit prorations increase seller net, buyer-debit prorations increase buyer funds needed, and buyer-credit prorations reduce buyer funds needed. Use the seller net closing math guide and buyer funds guide for the full stack.
Is proration the hardest Florida real estate exam math topic?
Proration is one of the easier arithmetic topics but one of the easier topics to reverse. The hard part is direction. If you can consistently label paid in arrears, paid in advance, buyer days, and seller days, proration becomes manageable.
Does Pass Florida provide official exam questions?
No. Pass Florida uses original Florida-specific practice questions. It does not use copied, leaked, reconstructed, or official Pearson VUE exam questions.
Methodology
This guide was reviewed and rewritten on June 19, 2026, and re-verified against primary Florida sources on June 25, 2026 (including a correction to the DBPR test-center calculator rule, which the Candidate Information Booklet allows for financial calculators with an alpha button such as the TI BA series). Primary sources: the DBPR Real Estate Sales Associate Candidate Information Booklet effective January 2025, Florida Statutes Chapter 192 and Chapter 197 property-tax provisions, Florida Department of Revenue 2026 additional homestead exemption adjustment guidance, Florida Administrative Code Rule 12D-13.002, and current Florida Realtors residential contract form language available during review.
The exam connection is anchored to the DBPR Candidate Information Booklet, which states that the Florida sales associate examination is a closed-book, 100-question, 3.5-hour exam based on Chapter 475, Part I, Florida Statutes, and Chapter 61J2, Florida Administrative Code. The same booklet lists Real Estate Related Computations and Closing of Transactions at 6% and Taxes Affecting Real Estate at 3%. It also lists calculator restrictions for test centers. The worked examples and practice questions in this article are original Pass Florida teaching scenarios, not copied DBPR or Pearson VUE questions.
Product note. Pass Florida is our Florida-specific exam prep app, so the product relationship is direct and disclosed. Pass Florida is an educational exam-prep tool for Florida sales associate candidates and includes 1,002 Florida-specific practice questions, a 19-topic diagnostic mapped to the DBPR exam outline, six modes, Math Coach across the 14 Florida math calculation types, Trap Library, Confidence Calibration, offline access, optional sync, lifetime updates, and one $39.99 purchase. No subscription. No copied exam questions. Pass Florida is independent exam preparation, not a DBPR-approved 63-hour pre-license course, legal service, tax service, title service, closing service, appraisal service, or guarantee of passage.
This post is exam preparation content for the Florida Real Estate Sales Associate exam. It is not legal, tax, financial, lending, appraisal, brokerage, insurance, title, closing, or professional advice. Florida closing custom, contract forms, proration methods, property-tax rules, homestead-exemption amounts, and party-pays-what conventions can change or vary by contract. For a real-world closing, verify the executed contract, lender documents, title commitment, tax records, and proration method with a Florida title agent, lender, qualified counsel, and closing agent before relying on any number in this article. Studying with Pass Florida or any other exam-prep tool does not guarantee passage of the state exam.
Sources
- DBPR Real Estate Sales Associate Candidate Information Booklet
- Pearson VUE Florida Real Estate testing page
- F.S. 192.042, date of assessment
- F.S. 197.122, lien of taxes and annual payment responsibility
- F.S. 197.333, when taxes are due and delinquent
- F.S. 197.162, tax discount payment periods
- Florida Department of Revenue 2026 additional homestead exemption adjustment
- Florida Administrative Code Rule 12D-13.002, when taxes are due
- Florida Realtors/Florida Bar "AS IS" Residential Contract for Sale and Purchase
