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WORKING WITH US GIVES YOU THE ADVANTAGE. |
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Items Usually Debited (Charged) To The Buyer Include The Following:
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1. Purchase price of the real property
2. Purchase price of personal property
3. Deed recording fees
4. Title examination
5. Title insurance
6. Hazard insurance
7. Survey
8. Appraisal fee (sometimes charged to seller)
9. Perpaid taxes
10. Loan assumption fees
Items Likely To Be Debited To A Seller Are:
1. Sales Commission
2. Current but unpaid taxes
3. Existing debt-whether assumed or to be paid
4. Loan prepayment penalties
5. Discount points for buyer's VA or FHA.
Discount Points on conventional loans may be
charged to buyer or to seller depending on contractual
arrangements, custom in the area, local law, etc.
6. Rent received in advance
7. Deed Preparation |
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Financial Aspects Of Buying & Selling
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Items that affect only one party will be shown as a debit or a credit only on the statement of the party affected. For example, if the sales commission is paid by the seller, the amount will appear only on the seller's closing statement. If the buyer pays for a survey, it will appear on the buyer's statement only.
Items of value that are sold, exchanged, or transferred between buyer and seller will be shown in opposite columns of both parties. For example, the transferred property is shown as a credit to the seller and as debit to the buyer. Never should an item transferred, exchanged, or taken over be shown as a credit to both parties or as a debit to both. If an item is transferred, sold, or exchanged, it will be a debit to one party and a credit to the other.
When selling your home you may ask the person responsible for closing to allow you to review the figures a day or two prior to closing. If any amount does not appear correct or you have questions concerning charges, get the problem resolved then. It is awkward to resolve matters at the last minute.
Items credited or debited can vary dramatically, depending on region. |
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Items That Are Likely To Be Credited To The Buyer Are:
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1. Earnest money deposits
2. Proceeds of a loan the buyer borrows
3. Assumption of a loan
4. Mortgage to the seller (purchase money)
5. Current taxes unpaid to closing
6. Tenant rents paid in advance (the seller
collected these)
7. Balance due from purchase to close (paid by
buyer to close)
Items Usually Credited To A Seller Are:
1. Sales price of real property
2. Sales price of personal property
3. Prepaid taxes
4. Prepaid insurance (only if policy is assumed by
buyer)
5. Escrow balance held by lender |
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