24 Hour Loans glossary of financial terms

Apportionment

The term apportionment is most commonly used within the mortgage sector. Here, it is used to describe the process of dividing financial responsibilities between the buyer and seller of a particular property during the purchasing process. So, it will be used, for example, to work out who has to pay what for costs such as council tax, utility bills and water rates and so on. For example, if you are selling your home in June but have already paid your council tax for the whole year in advance then you will be able to work out how much the buyer of your home should pay from the date they take over the property.

This apportionment process means that both the property buyer and the property seller can reach an equitable agreement over the fair division of these kinds of costs, It also means that neither party will be forced to pay for services that they will not use or have used while they reside in the property in question. In some cases your conveyancer or solicitor will manage the apportionment process for you.