Escrow & Title
What is 'net proceeds statement' in a Hawaii real estate transaction and who prepares it?
AA. A statement the buyer's lender prepares showing the buyer's net cash needed to close
BB. A statement prepared by the escrow officer showing the seller's net proceeds after all deductions (loan payoff, commission, closing costs, prorations)✓ Correct
CC. A tax document the seller prepares for their accountant after closing
DD. A statement of net operating income prepared by the property manager
Explanation
The net proceeds statement (seller's closing statement) is prepared by the escrow officer and shows the seller's gross sale price minus all deductions: existing loan payoff(s), real estate commission, escrow fees, prorations (property taxes, HOA fees), and other seller costs. It shows the net cash the seller receives after all costs are paid—a critical document for the seller's financial planning.
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