Math

Question 1

Purchasing the home means

Answer 1

Debit seller for home amount

Crediting buyer for home amount

Question 2

Payoff seller’s loan balance means

Answer 2

As debit to the seller

Question 3

Interest due from seller means

Answer 3

Debit the seller to charge the seller

Question 4

If seller is charged for a prepayment penalty

Answer 4

This would appear on the settlement statement as debit to the seller

Question 5

If seller pays commission

Answer 5

Debit whoever agrees to the commission

Question 6

How would Deed preparation fee, title search fee and home inspection appear?

Answer 6

If you take the I out of the word ‘debit’, you have a debt and you debit whoever agrees to pay the bill

Question 7

How would a buyer’s new loan be recorded?

Answer 7

Since the lender brings the money, credit the buyer

Question 8

If closing in the middle of the month

Answer 8

Buyer must pay interest up to the end of the month of settlement

Question 9

If taxes for the year are due and they’re not paid

Answer 9

Debit the seller and credit the buyer for the amount owed

Question 10

A good legal description

Answer 10

Never includes the address of the property

Question 11

If real estate agent wants to net $50,000 after paying a 6% commission

Answer 11

Divide what the seller wants $50,000 by the aggregate of the commission rate: (100% - 6%)