Chapter 14 (Real Estate-Related Computations and Closing of Transactions / Math) Flashcards
The binder deposit held in escrow by a broker would be entered on the closing statement as a __________________ to the __________________ .
credit,
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 on a closing statement as __________________ entries.
double
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,
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 mad as either __________________ or __________________ .
receipts,
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
