Escrow & TitleIntermediateAlaska Exam

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

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

Why The outstanding mortgage balance Is Correct

Answer B: The outstanding mortgage balance

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.

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

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