Closing Real Estate Transactions Flashcards
1
Q
Are these commonly paid by the buyer or the seller?
Loans to be paid; Interest on the loan Commission Security deposits or prepaid rents Title insurance Preparation of the deed State transfer tax on the deed Attorney's fees
A
The seller commonly pays Loans to be paid; Interest on the loan Commission Security deposits or prepaid rents Title insurance Preparation of the deed State transfer tax on the deed Attorney's fees
2
Q
Are these commonly paid by the buyer or seller? Sales price Title insurance Preparation of deed Recording of deed Recording of mortgage Documentary tax on note Intangible tax on mortgage Attorney's fees Interest adjustments
A
The buyer commonly pays: Sales price Title insurance Preparation of deed Recording of deed Recording of mortgage Documentary tax on note Intangible tax on mortgage Attorney's fees Interest adjustments
3
Q
This is a compilation of all the credits and debits of the seller and buyer.
A
The Closing Statement
4
Q
What taxes are due on a Florida closing?
A
Taxes due on a Florida closing include:
Taxes on the deed
Doc stamps on Mortgage (If mortgaged)
New Mortgage tax (If new mortgage)
5
Q
What are taxes on the deed taxed at and to whom?
A
The deed is taxed at $.70 for each $100 of sales price and each fractional part of $100. (Usually charged to seller.)
6
Q
What taxes are charged on new mortgages and to whom?
A
- The promissory note is taxed $.35 per $100 of debt or fraction thereof. (Usually charged to the buyer.)
- A new mortgage is taxed at $.002 (mills - cost per thousand). This is for new mortgages only. (Buyer is usually debited.)
7
Q
Taxes are paid in arrears. Are they a credit or debit to the seller? Are they a credit or debit to the buyer?
A
The seller will be charged (debited) and the buyer will be credited.
