Chapter 14 - real estate computations and closing of transactions - 6%

Question 1

lHow does the Binder Deposit show on the closing statement for the buyer

Answer 1

This shows as a credit to the buyer. It does not show on the seller portion of the closing statement

Question 2

What item is subject to proration

Answer 2

Rent - it is usually paid in advance. Seller only keeps the rent for the portion they owned the property

Question 3

Expenses are debited to either the buyer or seller. No credits in this section

Answer 3

All items in this section are single entry only

Question 4

The state intangible tax on a mortgage is paid on

Answer 4

all new mortgages only

Question 5

The state intangible tax on a mortgage is calculated as

Answer 5

2 mills (.002) on the total amount of the new mortgage

Question 6

State intangible tax is not payable when a mortgage is

Answer 6

being assumed or title to the property is taken subject to mortgage