Transfer of Title Flashcards
1
Q
An assumed loan in a real estate transaction would appear on the closing statement as a:
A » credit to the buyer only
B » debit to the buyer, credit to the seller
C » debit to the seller, credit to the buyer
D » neither a debit nor credit to the seller
A
(C) The seller still owes on the loan - hence the debit to the seller; the buyer receives the loan money to help buy the property - hence the credit to the buyer. (A) Credit buyer only is wrong as the seller owes the money (debit). (B) This answer is simply backwards. (D) It would show as a debit to the seller.
