In the example closing, who is shown as being charged for the day of closing?

• A. Seller
• B. Lender
• C. Title company
• D. Buyer

Answer: (D)

The essential idea is prorations and when ownership changes. At closing, title passes from the seller to the buyer, so daily costs that accrue while someone owns the property must be split accordingly. Since the buyer becomes the owner on the day of closing, they’re responsible for the day-of-closing charges (such as per‑diem mortgage interest, property taxes, and HOA dues) starting on that date. The seller is credited for costs incurred up to and including the closing day, but not for the day after closing. This is why the day of closing is shown as a charge to the buyer on the settlement statement. The lender and title company aren’t assigned those daily ownership costs simply because closing occurred; they’re involved in the transaction, but the daily prorations tie directly to who owns the property on that date.