Apportionment in Florida Real Estate
Apportionment is the process of dividing property expenses and income between buyer and seller at closing based on each party's period of ownership. Accurate apportionment ensures that each party pays only for the time they actually own the property.
Common Apportioned Items
Florida closings routinely apportion several categories. Property taxes are prorated from January 1 through the closing date and credited to the buyer. HOA/condo assessments are divided based on the payment period. Rents collected by the seller for periods after closing are credited to the buyer. Insurance premiums may be apportioned if the buyer assumes the seller's policy, though most buyers obtain new coverage.
Calculation Methods
Florida title companies use either a 365-day year or a 360-day year for apportionment calculations, depending on the contract terms and local custom. The closing statement itemizes each apportioned amount with the calculation methodology. The standard FAR/BAR contract includes provisions for post-closing adjustments when estimated amounts (such as taxes based on the prior year's bill) differ from the actual amounts.
Related Terms
- Closing Costs
- Proration
- Ad Valorem Tax
Barnes Walker Title Services
Barnes Walker Title handles all closing calculations including tax and assessment apportionments. Submit a title inquiry for closing coordination.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC