Florida Closing-Statement and Proration Math
Florida's integrated broker exam includes closing-statement and proration calculations. This chapter covers tax proration and commission math brokers must perform accurately.
Proration of Taxes and Recurring Costs
Recurring costs such as property taxes are prorated between buyer and seller as of the closing date. The seller is responsible for the share of the tax year during which the seller owned the property, and the buyer takes over from there. Because Florida property taxes are paid in arrears, the seller typically owes the buyer a credit at closing for the seller's portion of the unpaid year.
Commission and Split Math
Brokers must compute commissions and splits correctly because they are responsible for disbursing compensation. Always calculate the total commission first (rate times price), then apply any split between the listing and cooperating brokerages and between the brokerage and its associates. Careful, ordered arithmetic prevents disbursement errors that can draw complaints.