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Glossary of Closing the Transaction

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before closing, the buyer will make a final inspection of the property called a what?
walk-through
name the 4 things that the buyer does a walk-through before closing to insure?
1 the seller has vactaed the premises
2 no damage has occurred since the last inspection
3 the seller has not removed any fixtures
4 the seller has left behind any personal prop agreed upon in the contract
Name 6 purposes of closing.
1 to insure all contract provisions have been completed
2 to receive the amt due from the buyer
3 to remit the net proceeds from the sale to the seller
4 to pay all the settlement cost and charges
5 to convey legal title to the buyer
6 to make sure commission is paid to the listing broker
is a debt a
- or +
-
is a credit a
- or +
+
a 4 column closing statement worksheet which itemized debits and credits for both buyer and seller
settlement statement worksheet
On the settlement worksheet the sales price is (debited or credited) to the buyer.
debited
On the settlement worksheet the sales price is (debited or credited) to the seller.
credited
On the settlement worksheet the broker's commission is (debited or credited) to the (buyer or seller)?
debited
seller
On the settlement worksheet the earnest money deposit is (debited or credited) to the (buyer or seller)?
credited
buyer
On the settlement worksheet the seller's loan balance is (debited or credited) to the (buyer or seller)?
debited
seller
On the settlement worksheet the seller's loan interest is (debited or credited) to the seller?
debited
in the case where the buyer is assuming the seller's loan, on the settlement worksheet, the seller's loan interest is (debited or credited) to the seller?
debit
in the case where the buyer is assuming the seller's loan, on the settlement worksheet, the seller's loan principal is (debited or credited) to the seller?
debited
in the case where the buyer is assuming the seller's loan, on the settlement worksheet, the seller's loan interest is (debited or credited) to the buyer?
credited
in the case where the buyer is assuming the seller's loan, on the settlement worksheet, the seller's loan principal is (debited or credited) to the buyer?
credited
Proration Rules 1,2&3
1 Credit one party the same dollar amount that you debit the other
2 Prorate on the basis of a 360 day year and a 30 day month
3 The seller owns the property on the settlement (closing) date for prorations
On a settlement statement at closing, the real estate tax from the jan 1 until closing is (credited or debited) the seller?
debited
On a settlement statement at closing, the real estate tax from the jan 1 until closing is (credited or debited) the buyer?
credited
buyer's hazard insurance premium is (credited or debited) the buyer?
debited
When the buyer assumes the seller's hazard insurance, the portion that is already paid by the seller and not used is (credited or debited) to him?
credited
When the buyer assumes the seller's hazard insurance the portion that the seller has pre-paid is (debited or credited) to the buyer?
debited
On the settlement statement, in regards to rent what amount is prorated?
the current month's rent
On the settlement statement, the current month's rent from the 1st of the month until the day of closing is (credited or debited) to the seller?
debited
On the settlement statement, the current month's rent from the 1st of the month until the day of closing is (credited or debited) to the buyer?
credited
Who fills out the settlement statement worksheet?
the closing agent

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