Printable cheat sheet

Texas real estate proration cheat sheet

Built for Texas sales agent exam prep. Name the timing, period, day-count method, closing-day owner, and matching entries before touching the arithmetic. Keep full precision until the final cent.

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Two-line formulaDaily rate, then share

Daily rate = period amount / period days. Proration = unrounded daily rate x assigned ownership days.

Day-count methodUse the stated method

Pearson says the question supplies 360 or 365 when needed. A banker's year uses 30-day months. The 365 setup uses calendar day positions while keeping the stated denominator.

Closing dayPlace it exactly once

If the seller owns closing day, include it in seller days. If the buyer owns it, stop the seller count the day before.

Unpaid taxesSeller debit / buyer credit

Calculate the seller's share. The buyer will later pay a bill covering the seller's ownership time.

Prepaid expenseBuyer debit / seller credit

Calculate the buyer's share. The seller already paid for time the buyer will own.

Rent collected aheadSeller debit / buyer credit

Calculate the buyer's share. The seller collected rent for days the buyer will own.

The six-step exam setup

  1. Name the timing: unpaid expense, prepaid expense, or rent collected in advance.
  2. Name the amount period: annual, quarterly, or monthly.
  3. Use the 360-day or 365-day method stated in the question.
  4. Assign closing day to the buyer or seller exactly as stated, then count ownership days.
  5. Choose the seller and buyer debit or credit entries before doing the arithmetic.
  6. Divide, multiply with full precision, round the final money amount to cents, and post equal entries.

Use the matching period denominator

365 methodAnnual: 365 days

If the question says 365-day year, keep 365 even in a leap year. For a live closing, follow the signed contract and settlement agent's method.

365 methodQuarter: actual days

Count the actual calendar days in that quarter. A quarter can contain 90, 91, or 92 days.

365 methodMonth: actual days

Use the actual 28, 29, 30, or 31 days in the month containing the closing date.

360 methodAnnual: 360 days

Treat the year as twelve equal 30-day months.

360 methodQuarter: 90 days

Three banker's months x 30 days each.

360 methodMonth: 30 days

Do not switch back to the actual number of calendar days in that month.

Five worked examples

Unpaid annual taxes$4,380 annual taxes, July 15 closing, seller owns closing day

$4,380 / 365 = $12. Seller days through July 15 are 196. $12 x 196 = $2,352 seller debit and buyer credit.

360-day banker's year$3,600 annual taxes, June 12 closing, buyer owns closing day

$3,600 / 360 = $10. The banker's count through June 12 is 162, but the buyer owns closing day. Seller days are 161. Seller debit and buyer credit: $1,610.

Prepaid HOA dues$600 June HOA dues, June 10 closing, seller owns closing day, 30-day month

$600 / 30 = $20. Buyer owns June 11 through June 30, or 20 days. Buyer debit and seller credit: $400.

Quarterly unpaid charge$900 quarterly charge, July 15 closing, seller owns closing day, unpaid

The quarter has 92 days and July 15 is seller day 15. $900 / 92 x 15 = $146.739130... Keep the quotient unrounded, then post a $146.74 seller debit and buyer credit.

Rent collected in advance$2,400 June rent collected, June 10 closing, seller owns closing day, 30-day month

$2,400 / 30 = $80. Buyer days are June 11 through June 30, or 20 days. Seller debit and buyer credit: $1,600.

Traps to check

  1. Do not use actual calendar days when the question says 360-day year or banker's year, and do not force 30-day months into an actual-day setup.
  2. Do not assume who owns closing day. Pearson says the question will specify buyer or seller when needed.
  3. Do not mix an annual, quarterly, or monthly amount with the wrong period denominator.
  4. Do not round the daily rate before multiplying. Keep full precision and round the final money amount to cents.
  5. Do not treat rent collected in advance like a prepaid seller expense. Both use buyer days, but their debit and credit direction differs.
  6. Do not post only one side. Every proration creates an equal debit and credit.

Sanity check

  1. Seller days + buyer days must equal the period days. Closing day appears once, never twice and never zero times.
  2. The seller entry and buyer entry must be equal in dollars and opposite as debit and credit.
  3. At full precision, seller share + buyer share should equal the period amount before final cent rounding.
  4. In the usual exam setup, unpaid expenses charge the seller; prepaid expenses reimburse the seller; advance rent charges the seller for buyer days.
Practice the patternPass Texas drills prorations, day counts, and mixed closing math.

Use the calculator, Math Coach, Trap Library, and Texas-specific questions at passtexasrealestate.com.

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Sources: Pearson VUE Texas Real Estate Content Outline #094401, January 2026, TREC One to Four Family Residential Contract (Resale), Form 20-19, and Texas Comptroller Property Tax Basics. Pearson says proration questions identify the 360- or 365-day basis and who owns closing day when needed. Current TREC Form 20-19 prorates listed items through the Closing Date. For exam preparation only, not tax, legal, or closing advice.

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