Settlement Statements

Question 1

Which of the following would appear as a debit on the seller’s statement?

I. Survey and staking of property
II. Mortgage payoff

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

Answer 1

C) Both I and II

I. Survey and staking of property
II. Mortgage payoff

Question 2

Which of the following would appear as credit to the seller?

I. Interest proportion
II. Insurance proportion

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

Answer 2

B) II Only Insurance proportion

Question 3

The following would appear as debit to the seller and a credit to the buyer:

I. a delinquent tax proration
II. Insurance proration

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

Answer 3

A) I Only

I a delinquent tax proration

Question 4

The following would appear as a credit to the seller and a debit to the buyer:

I. Interest proration
II. Delinquent tax proration

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

Answer 4

D) Neither I nor II

Question 5

The interest proration on a mortgage payoff is shown as:

I. Debt to the seller
II. Credit to the buyer

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

Answer 5

A) I Only - I. Debt to the seller

Question 6

The purchase price appears in the:

I. Seller’s credit column
II. Buyer’s credit column

A) I Only
B) II Only
C) Both I and II
D) Neither I nor II

Answer 6

A) I only - Seller’s credit column

Question 7

On the first of every month a homeowner collects $900 per month rent for unit he has over his garage. His house sells, and closing is set for August 18. What is the proration

A) $30 Debit seller, credit buyer
B) $390 Debit seller, credit buyer
C) $360 Debit buyer, credit seller
D) $390 Debit buyer’s credit seller

Answer 7

B) $390 Debit seller, credit buyer

Question 8

A condo sold for $95,000. The mortgage balance was $33,000, seller’s escrow fees were $450, deed preparation $90, and a 6% commission was paid. Seller received $750 tax credit and took a $15,000 second mortgage from the buyer. What did the seller receive at closing?

A) $41,510
B) $43,522
C) $55,010
D) $71,510

Answer 8

A) $41, 510

Question 9

The buyer deposited $2,500 on a $47,000 home. He has a 90% loan; receives a $250 proration credit; pays $950 in attorney’s fees, and 4 points on the mortgage. How much money does the buyer bring to closing?

A) $4,342
B) $4,592
C) $4,842
D) $5,850

Answer 9

B) $4,592

Question 10

Seller sold his home on August 20, 2014. He prepaid the real property taxes of $3,060 on January 1, 2014 for the entire calendar year. What was the prorated tax owed to the seller?
A) $1955
B) $849
C) $1,105
D) $2,210

Answer 10

C) $1,105

Question 11

Mr Kim netted 55,00 from the sale of his home. He paid off his $35,000 mortgage, $1,140 inclosing costs, and a 7% commission. What was his sales price?

A) 88, 860
B) 98,000
C) 97, 520
D) 96, 300

Answer 11

B) 98, 000

Question 12

If a Hawaii Title insurance policy costs $450, how much will the buyer usually pay?

A) $225
B) $180
C) $270
D) None of the above

Answer 12

B) $180