What Is Pro Rata?

Pro rata means dividing a shared cost or income proportionally — based on ownership percentage, square footage, or time — rather than splitting it equally.

Most useful for: Repeat Buyer · Home Seller
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Pro Rata
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Definition
Plain-English meaning
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A tenant occupying 10% of a shopping center's square footage typically pays a 10% pro rata share of the property's common area maintenance charges.

Example

A tenant occupying 10% of a shopping center's square footage typically pays a 10% pro rata share of the property's common area maintenance charges.

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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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