505 East Jackson Street-Suite 303 - Tampa, Florida 33602
Phone: (813) 387-7724 - Fax: (813) 387-7727
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505 East Jackson Street-Suite 303 - Tampa, Florida 33602 Phone: (813) 387-7724 - Fax: (813) 387-7727
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Knowledge Is Key To Buying and Selling Real Estate By Attorney Miriam L. Sumpter Richard Date: September 15, 2003
WHAT IS THE PURPOSE
OF THE CLOSING STATEMENT The closing statement provides an accounting of all funds involved in a real estate transaction. Nowadays, the licensing law requires brokers to make sure that a closing statement is provided to both the seller and the buyer. Nowadays, the title agent prepares the statement. The closing statement shows the amount the buyer must pay and the amount that the seller will receive from the transaction. Items usually debited (charged) to the buyer are: (1) Purchase price of the real property; (2) Purchase price of personal property; (3) Deed recording fees; (4) Title Examination; (5) Title Insurance; (6) Hazard Insurance; (7) Survey; (8) Appraisal fee (Sometimes charged to the seller); (9) Prepaid taxes and (10.) loan assumption fees. Items usually credited to the buyer are: (1) Ernest money deposits; (2) Proceeds of a loan (s)he borrows; (3) Assumption of a loan; (4) Mortgage to the seller (purchase money); (5) Current taxes unpaid to closing; (6) Tenants rents paid in advance (the seller collected these); (7) Balance due to close. Items likely to be debited to a seller are: (1) Sales Commission; (2) Current but unpaid taxes; (3) Existing debts, whether assumed or to be paid off; (4) Loan prepayment penalties; (5) Discounts points; (6) Rents received in advance and (7) Deed Preparation. Items likely to be credited to a seller are: (1) Sales price of real property; (2) Sales price of personal property; (3) Prepaid taxes; (4) Prepaid Insurance and (5) Escrow balance. In short, you need not be a bookkeeper to understand closing statements. Two columns are shown for the buyer and two columns are shown for the seller. The two columns for each party are a debit column and a credit column. The total of the debit and credit columns must agree with each other. Remember, if you do not understand the closing statement, DO NOT CLOSE!
For More Information Contact: Tel:
(813) 387-7724
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