Question
A married couple is purchasing a home for $198,000 and gave the broker a $10,000 earnest money deposit. The buyers will finance the purchase with
A married couple is purchasing a home for $198,000 and gave the broker a $10,000 earnest money deposit. The buyers will finance the purchase with a new 80% loan-to-value mortgage loan.
The closing date is March 18, with the closing day charged to the buyer. Homeowners association dues are $325 monthly and were paid in advance by the seller. Property taxes are $2,416. Prorations should be made using the 365-day method.
The sellers will pay the 6% brokerage fee, the documentary stamp tax on the deed, and title insurance of $1,789. The buyers will pay the appropriate state taxes on the note and mortgage, $72 in recording fees, and for a survey costing of $475.
How is the purchase price shown on the Closing Disclosure?
A)$198,000 debit seller, credit buyer; page 3
B)$198,000 credit buyer only; page 3
C)$198,000 debit buyer only; page 3
D)$198,000 credit seller, debit buyer; page 3
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