Definition
The proration date is the dividing line at closing—typically the closing or possession date. Everything before the proration date is the seller's responsibility; everything after is yours.
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The proration date is typically the closing date or possession date, though some agreements specify a different date. For example, if closing is April 15 but the buyer takes possession on April 20, the proration date might be April 20. All expenses from the beginning of the period through the day before the proration date are the seller's responsibility; all expenses from the proration date forward are the buyer's responsibility.
Pro Tip
Ensure the purchase agreement clearly specifies the proration date to avoid confusion about who owes what.
Example
The purchase agreement stated that the proration date would be April 15 (the closing date). All utilities and property taxes through April 14 would be the seller's responsibility, and those from April 15 forward would be the buyer's responsibility.