What is the proration of rent between the seller and buyer if the monthly rent is $625 starting on the 10th and closing on October 31?

To determine the proration of rent between the seller and buyer, it is essential to understand how to allocate the rent due based on the closing date and the rental period involved. In this case, the monthly rent is $625, and the rental period begins on the 10th of the month, with the closing taking place on October 31.

First, we need to calculate the daily rent. Since October has 31 days, the daily rent can be calculated as:

Daily Rent = Monthly Rent / Number of Days in Month Daily Rent = $625 / 31 ≈ $20.16 per day

Next, we determine how many days in October the seller is responsible for rent. The seller owns the property and collects rent up to the date of closing (October 31). Since the rent starts on the 10th, the seller will receive rent for the days from the 10th through the 30th. This is a total of 21 days (from the 10th to the 30th, inclusive).

Now we can calculate the amount of rent for those 21 days:

Rent for Seller's Share = Daily Rent x Number of Days Seller is Responsible Rent for Seller's Share = $20.16