An Alaska buyer pays $450,000 for a property on which the seller has a $300,000 mortgage. At closing, the seller's net proceeds (ignoring other costs) are:
Why $150,000 Is Correct
Answer A: $150,000
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
People Also Study
Related Alaska Questions
- An Alaska property sold for $350,000. The seller's remaining mortgage balance was $185,000, commission was 6%, and other closing costs were $2,500. What are the seller's net proceeds?Real Estate Math
- An Alaska property sells for $615,000. The seller's outstanding mortgage is $320,000. Commission is 5.5% and other closing costs are $4,800. The seller's net proceeds are:Real Estate Math
- An Alaska property is listed for $560,000. The seller agrees to pay 3% of the sale price toward buyer closing costs. If the property sells at full price, how much does the seller contribute to closing costs?Real Estate Math
- An Alaska homeowner refinances a $240,000 mortgage to a new loan at a lower rate. The refinance saves $185/month in payments. Closing costs are $5,000. The break-even period is approximately:Real Estate Math
- In Alaska, which type of mortgage clause allows the lender to demand full repayment of the loan upon the property's sale?Finance
- A buyer in Alaska has been given possession of a property before closing under a 'pre-closing occupancy agreement.' If the sale falls through, the buyer's status is most like a:Contracts
- A seller in Alaska receives an offer that includes a request for the seller to pay $8,000 toward the buyer's closing costs. This is called:Contracts
- An Alaska property has a price of $450,000. The buyer obtains a conventional mortgage with 20% down. What is the monthly mortgage payment if the mortgage constant (factor) for a 30-year loan at 5.5% is $5.678 per $1,000?Finance
Key Terms to Know
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →