Escrow & Title

In a typical Alaska closing, which of the following is a SELLER debit on the settlement statement?

AThe purchase price
BThe outstanding mortgage balance✓ Correct
CThe buyer's earnest money deposit
DThe property tax proration credit to the buyer

Explanation

The seller's outstanding mortgage balance is a debit to the seller because it must be paid off from the sale proceeds at closing. The purchase price is a credit to the seller, and the tax proration may appear as either a credit or debit depending on the payment status.

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