Chapter 14: Real Estate-Related Computations & Closing of Transactions (FITB) Flashcards
The binder deposit held in escrow by a broker would be entered on the closing statement as a ____ to the ____.
credit to the buyer.
The ____ normally pays for the documentary stamp tax on the deed.
seller
Expenses on a closing statement are always entered as ____.
debits
Prorations are always entered onto a closing statement as ____ entries.
double
Title insurance is ordinarily paid by the ____.
buyer
The state documentary stamp tax on the promissory note and intangible tax on a new mortgage is normally paid by the ____.
buyer
____ is paid in advance; ____ and ____ are paid in arrears.
rent, taxes and interest
The amount due the seller at closing is calculated by subtracting the seller’s total ____ from the seller’s total ____.
debits, credits
The amount the buyer is required to bring to closing is calculated by subtracting the buyer’s total ____ from the buyer’s total ____.
credits, debits
The seller’s ____ ____ and the buyer’s ____ ____ are not usually equal due to the differences in their expenses.
grand totals, grand totals
The day of closing is always charged to the buyer for ____.
prepaid interest
Entries on the broker’s statement are made as either ____ or ____.
receipts or disbursements
Prorated rent is entered on the closing statement as a ____ to the seller and a ____ to the buyer.
debit, credit
No taxes are payable on either the note or mortgage when title is taken ____ ____ the mortgage.
subject to
