Escrow & Title
After a Maine closing, surplus funds remaining in escrow after all costs are paid belong to:
AThe real estate agent
BThe closing attorney
CThe party (buyer or seller) entitled to them under the contract✓ Correct
DThe title insurance company
Explanation
Surplus escrow funds belong to the party entitled to them under the contract terms. Typically, overpayments by the buyer would be returned to the buyer, and any seller proceeds belong to the seller.
People Also Study
Related Maine Questions
- A Maine property sold for $390,000. The seller paid the buyer's closing costs of $4,500, a 5% commission, and had a mortgage balance of $220,000. What were the seller's net proceeds?Real Estate Math
- A Maine seller accepts an offer of $348,000. After paying off a $205,000 mortgage, a 5.5% commission, and $2,200 in closing costs, the seller's net proceeds are:Real Estate Math
- A Maine property going to foreclosure has a senior lien of $280,000 and sells for $310,000 at the foreclosure auction. The foreclosing lender's costs are $12,000. Remaining proceeds distributed to junior lienholders are:Finance
- A Maine homebuyer's closing costs include prepaid items such as homeowner's insurance and prepaid interest. These prepaid items are paid at closing to:Finance
- A seller owes $145,000 on their mortgage. The home sells for $265,000, and closing costs are $6,000 (including a 5% commission). What are the seller's net proceeds?Real Estate Math
- A Maine closing involves proration of property taxes. The seller's closing is July 1. Annual taxes of $3,600 are paid in advance. How much does the seller receive back as a credit?Escrow & Title
- In Maine, 'points' paid at closing on a mortgage loan are best described as:Finance
- At a Maine closing, the settlement agent distributes funds according to:Escrow & Title
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Closing CostsFees 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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Study This Topic
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →