If you’re buying a home in a community with a homeowners association (HOA), you’ll probably know about HOA fees. What most first-time buyers don’t know is that those fees can sneak into your closing costs in the form of prorations.

It’s one of those details that rarely gets explained well, but can add hundreds of dollars to your settlement sheet.

Why Do HOA Prorations Exist?

HOA dues are often billed monthly, quarterly, or annually. In many communities, they’re collected quarterly. Let’s say dues are $600 every quarter.

If the seller already paid the full quarter in advance, and you buy the home halfway through that quarter, you’ll owe the seller for your “unused share.”

It’s just like splitting the check at dinner — you pay for the part you’re going to use.

Example: $600 Quarterly Dues

• Quarter runs July 1 – Sept 30.
• Seller pays the full $600 on July 1.
• You close on July 15.
• There are 77 days left in the quarter.
• Daily HOA cost = $600 ÷ 92 days = $6.52/day.
• 77 × $6.52 ≈ $502 owed to seller.

Different Closing Dates, Different Costs

The closer you are to the end of the quarter, the less you owe.

Why This Matters

HOA prorations are smaller than property taxes, but they can add up, especially in higher-dues communities where quarterly fees might be $1,200 or more.

And if you’re also paying prorations for taxes and short interest at the same closing, these HOA reimbursements can be the tipping point that makes your numbers feel overwhelming.

House Karma Tip

Don’t overlook HOA prorations when budgeting. Ask your agent or lender: “What are the HOA dues, and when are they billed?” That way you’ll know if you’re likely to owe a big chunk at closing.

Bottom line: HOA prorations aren’t huge compared to taxes, but they’re one more thing that can add to your closing costs. Be ready for them.