Prorations may be based on what?

• A. either a 30-day month or the actual days.
• B. only a 30-day month.
• C. only the actual days.
• D. 30.42 days per month (364 divided by 12).

Answer: (A)

Prorations are about fairly dividing charges between buyer and seller for the exact period one party has ownership or responsibility. In California escrow practice, you can calculate those prorations using either the actual number of days in each month (actual days) or a simplified 30-day month. This flexibility exists because some charges accrue daily and others are billed in a standard monthly amount, so the method chosen depends on the item and agreement.

That’s why the best answer is that prorations may be based on either a 30-day month or the actual days—it accurately reflects real-world practice. The other options push for only one method or propose a nonstandard average, which isn’t how prorations are universally determined. For example, rent or HOA dues might be prorated using a 30-day month for simplicity, while taxes might be prorated by actual days for accuracy.