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  • Writer's pictureRaphael Collazo

What is Pro-Rata Share in Real Estate?

Pro-rata share is a term used in real estate to refer to the portion of a property or expense that is allocated to each owner or tenant based on their ownership or tenancy interest. Pro-rata share is often used in situations where multiple parties have an ownership or tenancy interest in a property, such as in a co-tenancy arrangement or a multi-unit residential building.

In real estate, pro-rata share is often used to determine the allocation of expenses or income related to a property. For example, in a co-tenancy arrangement, the pro-rata share of each tenant may be used to determine their share of the rent or other expenses associated with the property. Similarly, in a multi-unit residential building, the pro-rata share of each unit may be used to determine the allocation of expenses such as utilities or property taxes.

Pro-rata share is typically determined based on the percentage of ownership or tenancy interest that each party has in the property. It is an important factor to consider when evaluating the costs and benefits of a property or tenancy arrangement.

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