QUESTION 5

You are a paralegal coordinating the closing of Massachusetts property being sold by Evelyn and Frank (Sellers) to Grace and Hope (Buyers). Your firm represents the buyers and lender and will be acting as Settlement Agent. Details of the transaction are as follows:

• The property address is 200 Liberty Street, Soldasis, Massachusetts in Middlesex County.
• The purchase price is $500,000.00 and Buyers have already submitted a deposit of $25,000.00 being held by the listing agent in escrow.
• Buyers will be financing the purchase with a mortgage loan from Generic Mortgage in the amount of $450,000.00.
• The closing date will be September 1, 2021.
• Property taxes are $3650.00 for the year and have been paid in full through the first quarter of Fiscal Year 2021 by Sellers. Like most Massachusetts towns, the Soldasis bills taxes quarterly and the fiscal year starts on July 1. The quarterly bills are due in August, November, February and May, so taxes are currently paid through September 30, 2021
• You have already calculated Sellers' total closing costs to be $27,999.00.
• You have already calculated Buyers' total closing costs to be $7,212.05.
• You have received a final water and sewer reading from the Town of Soldasis Water Department that shows $140.15 is due.
• The Purchase & Sale Agreement recites that the Sellers have agreed to credit the Buyers $1,500.00 toward repairs