B7 Flashcards
When taxes are prorated on a closing statement, which of the following statements are true?
a. Taxes are based on the prior year
b. Taxes are based on the present year
c. Taxes are based on the future year
d. Taxes are based on a biannual year
a. Taxes are based on the prior year
You sell a property on June 6th. The annual water bill is $86 and the taxes are $778. All have been pre-paid. What is the proration at the close of escrow?
a. Debit $492 to seller
b. Debit $492 to buyer
c. Credit $286 to seller
d. Credit $286 to buyer
b. Debit $492 to buyer
The seller paid taxes for the year in the amount of $624. The property sold and closed escrow November 20th. What was the proration at the close of escrow?
a. $69.33 credit seller
b. $71.06 credit seller
c. $72.79 debit seller
d. $74.52 debit seller
b. $71.06 credit seller
A real estate sale was closed on March 21. The assessed value of the property is $72,500. Tax rate is $1.75 per $100 of assessed value. What is the proper entry on the seller’s settlement statement?
a. $285.47 debit
b. $285.47 credit
c. $281.94 debit
d. $281.94 credit
c. $281.94 debit
At the close of escrow, prepaid rents on a settlement sheet would appear as:
a. Credit to seller, debit to buyer
b. Credit to buyer, debit to seller
c. Prepaid rents are not prorated
d. Prepaid rents belong to the seller
b. Credit to buyer, debit to seller
If the COE is June 5, how much is owed if the seller prepaid $800 of property taxes for the year?
a. Debit the buyer $457, credit the seller $457
b. Credit buyer $457, debit seller $457
c. Debit the buyer $343, credit seller $343
d. Credit the buyer $343, debit seller $343
a. Debit the buyer $457, credit seller $457
Property taxes have been paid for the entire year. At closing this would appear as:
a. Full year credit to sell
b. No credit could be given to seller
c. Debit seller credit buyer
d. Credit seller debit buyer
d. Credit seller debit buyer
On a closing statement, the selling price would be shown as:
a. Debit to the buyer
b. Prorated to buyer and seller
c. Credit to the buyer
d. Debit to the seller
a. Debit to the buyer
Which of the following would appear as a credit on the seller’s closing statement?
a. Rents paid from a tenant to the seller in advance
b. Title insurance
c. Prepaid property taxes
d. Unpaid property taxes
c. Prepaid property taxes
You have two rentals for $650 and two for $550. The COE is June 10. How would this appear on the seller’s closing statement?
a. $720 debit seller
b. $720 credit seller
c. $1680 debit seller
d. $800 debit seller
c. $1680 debit seller
When a new loan is paid PITI, which of the following would NOT appear on an escrow closing statement:
a. Property taxes
b. Property insurance
c. Principal payments
d. Interest adjustments
c. Principal payments
What document is recorded with the deed?
a. Affidavit of value
b. Purchase contract
c. Promissory Note
d. HUD
a. Affidavit of value
