Escrow & Title
The 'settlement statement' (Closing Disclosure) at a NC closing shows:
AOnly the buyer's costs
BAll financial details of the transaction: purchase price, credits, debits, loan costs, and net proceeds✓ Correct
COnly the seller's net proceeds
DOnly the broker's commission
Explanation
The Closing Disclosure details all financial aspects of the transaction for both buyer and seller: purchase price, credits, debits, loan fees, prorations, and net proceeds or cash to close.
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Key Terms to Know
Proration
The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
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.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
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