- The estimated closing statement usually reflects debit and credit columns, as in standard bookkeeping practice. Credit is money received or a credit against monies owed by the party. Debit is money owed by the party.
- Credits reflected on the closing statement for the seller would include the following:
a. The buyer’s consideration or total sales pice.
b. Tax pre-paid by the seller and for which the buyer is responsible
c. Monies to be returned by the seller’s lender for an impound account - Debits are items to be paid by the seller, such as the following:
a. Unpaid loan balance of the seller to be paid of at closing
b. Owner’s title policy, if the seller is to pay (customary)
c. Commission payable to real estate agents
d. Any other vendor service or fee that the seller agreed to pay - Credits shown on the buyer’s statement are items prepaid or to be advanced by the lender.
a. Buyer’s deposit toward the purchase price
b. Buyer’s new loan
c. Balance of buyer’s remaining funds to be placed into escrow - Debits would reflect those fees for expenses for which the buyer is responsible for paying:
a. Loan processing fees
b. Interest to be paid on buyer’s loan at closing
c. Escrow and title fees
d. Hazard insurance
e. Recording
f. Total consideration (sales price)
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
