Fuel prorations are a common practice in New Hampshire real estate transactions, especially for properties that rely on heating oil or propane. This process ensures a fair allocation of fuel costs between the buyer and seller based on usage.  

How it works:

1. Fuel Type Identification: Determine whether the property uses heating oil, propane, or another fuel source.

2. Tank Level Assessment: Measure the remaining fuel in the tank as a percentage.

3. Cost Calculation: Multiply the current market price per gallon by the number of remaining gallons.

4. Proration: Divide the total fuel cost based on the closing date. The seller pays for the portion used before closing, and the buyer pays for the portion used after closing.

Key Considerations in New Hampshire:

• Seasonal Usage: New Hampshire's climate necessitates fuel usage, particularly during winter months. This can significantly impact proration calculations.

• Fuel Price Fluctuations: The price of heating oil and propane can vary throughout the year, affecting the overall cost.

• Tank Size and Efficiency: The size and efficiency of the heating system can influence fuel consumption and, consequently, proration amounts.

By understanding the basics of fuel prorations, both buyers and sellers can make informed decisions during the closing process.