At settlement the pro rata or proportional costs of ownership will be calculated and attributed to either the buyer and seller, or both.
Costs such as water rates, council rates, and body corporate fees are adjusted for the number of days out of 365 that the buyer and seller will each own the property.
Council rates are an annual charge, normally payable in installments. The legal team handling the purchase will search council records to find out exactly how much of the annual rates levy has been paid by the vendor. The rates for the year are normally paid in full at settlement and if the vendor owns the property within a rating period that has not yet been paid, they will have to allow the purchaser, pro rata, for those days.
For example if the vendor is up to date at the end of March but settles on the 31st April (with the next installment not due til the end of June) they will have to allow the purchaser 31 days of rates. If annual rates are $1460, the vendor would allow the purchaser $1460/365 x 31 = $124
Water rates and body corporate fees are normally charged per quarter and so once again depending on when settlement takes place, the vendor and purchaser are liable for the portion of the costs corresponding to their days of ownership within the designated time period.