Real Estate

Closing the Transaction

Fill in (or re-create) the two blank worksheets, Buyers Estimated Net Cost and Sellers Estimated Net Proceeds, based on the information below. You must decide which amounts are credits or debits for the seller or the buyer, prorate certain expenses between the two parties, and calculate the brokers commission. (For proration purposes, use a 365-day year.)

Purchase price for the home..................................................... $500,000.00

Brokers commission................................................................................... 6%

Closing date....................................................................................... May 1st

Escrow fees......................................................................................... $500.00

Property taxes (seller has paid taxes through end of tax year) $6,500.00

Good faith deposit........................................................................ $20,000.00

Purchase loan.............................................................................. $450,000.00

Appraisal fee...................................................................................... $400.00

Credit report fee.................................................................................. $75.00

Origination fee................................................................................. $4,500.00

Discount points.............................................................................. $27,000.00

Prepaid interest............................................................................... $2,200.00

Lenders title insurance...................................................................... $900.00

Inspection fees (to be paid by buyer)............................................ $600.00

Hazard insurance............................................................................... $475.00

Buyers attorneys fees...................................................................... $350.00

Buyers recording fees......................................................................... $50.00

Existing loan reserve account credit............................................... $900.00

Existing loan payoff..................................................................... $250,000.00

Interest due on existing loan............................................................. $850.00

Prepayment penalty on existing loan................................................. $0.00

Other liens and assessments................................................................. $0.00

Owners title insurance...................................................................... $725.00

Seller-paid discount points.................................................................... $0.00

Documentary transfer tax................................................................. $550.00

Required home repairs (to be paid by seller)............................. $4,500.00

Sellers attorneys fees........................................................................... $0.00

Sellers recording fees.......................................................................... $35.00

Sprint 4:44 PM Buyer's Estimated Net Cost Purchase Price Good faith deposit (credit) Financing (credit) Remainder (price less offsets) Buyer's Closing Costs Appraisal fee Credit repon Origination fee Discount points Prepaid interest Lender's title insurance Inspection fees Hazard insurance Attorney's fees Recording fees Escrow fee Property taxes Estimated Net Cost Share... Add to Photos Copy $ . Sprint 4:44 PM Seller's Estimated Net Proceeds Sales Price Prorated property taxes (credit) Reserve account (credit) Total Proceeds to Seller Seller's Closing Costs Loan payoff Interest due on loan Prepayment penalty Other liens and assessments Brokerage commission Owner's title insurance Seller-paid discount points Documentary transfer tax Repairs Attorney's fees Recording fees Escrow fee Estimated Net Proceeds Share... Add to Photos Copy er