Printable cheat sheet

    Texas real estate proration cheat sheet

    Built for Texas sales agent exam prep. Use this to name the day-count method (360 or 365), who owns the closing day, and the credit direction before you touch the arithmetic.

    Use the calculator
    FormulaAmount / days x proration days

    Find the daily rate first. Then multiply by the days assigned to the buyer or seller.

    360 vs 365 daysUse the stated method

    The Texas exam uses both the 365-day actual-calendar method and the 360-day banker's year with 30-day months. The stem tells you which one, so read it before you divide.

    Who owns closing dayRead the question

    The question states who owns the day of closing. Include closing day in the seller count if the seller owns it, otherwise stop the seller count the day before.

    Unpaid taxesSeller credits buyer

    Texas property taxes are commonly handled as an in-arrears item in exam-style questions.

    Prepaid expenseBuyer credits seller

    The seller paid for time the buyer will own, so the buyer reimburses the seller.

    Rent paid aheadSeller credits buyer

    The seller collected rent for days the buyer will own after closing.

    The exam setup rule

    1. Name the item first: unpaid tax, prepaid expense, rent collected ahead, or another prorated item.
    2. Name the period: annual, quarterly, or monthly.
    3. Use the day-count method stated in the question.
    4. Name who owns closing day before counting days.
    5. Decide the credit direction before calculating the dollar amount.

    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. Seller credit to buyer: 196 x $12 = $2,352.

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

    $3,600 / 360 = $10. Banker's count to June 12 is 162, but buyer owns closing day, so seller days are 161. Seller share: $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 reimburses seller $400.

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

    July 15 is day 15 of the quarter. $900 / 92 actual quarter days = $9.78. Seller credit to buyer: 15 x $9.78 = $146.74.

    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 credits buyer $1,600.

    Traps to check

    1. Do not use the 365-day method when the stem says 360-day year or banker's year, and the reverse.
    2. Do not assume who owns the closing day. The question states it, so read it before counting days.
    3. Do not mix annual, quarterly, and monthly base amounts.
    4. Do not treat rent collected in advance like an unpaid tax bill.
    5. Do not calculate first and choose the credit direction later.

    Sanity check

    1. More proration days should create a larger credit or debit.
    2. Unpaid items usually credit the buyer because the seller used the item before paying for it.
    3. Prepaid items usually credit the seller because the seller paid for time the buyer will own.
    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.

    Get Pass Texas

    Sources: TREC Candidate Handbook, TRELA (Texas Occupations Code Ch. 1101), TREC Rules (22 TAC), and Texas statutes for property tax due dates and tax lien timing. For exam prep only, not tax or legal advice.

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