Escrow & Title

A Pennsylvania home seller's existing mortgage balance at closing is $150,000 on a $275,000 sale. The closing costs total $20,000. What does the seller receive?

A$85,000
B$105,000✓ Correct
C$125,000
D$255,000

Explanation

Seller's net proceeds = Sale Price − Mortgage Payoff − Closing Costs = $275,000 − $150,000 − $20,000 = $105,000. Closing costs for sellers typically include the real estate commission, transfer taxes, title insurance, and any seller-paid concessions. Understanding net proceeds helps sellers plan their financial moves.

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