Use the following information to complete the Settlement Statement.

• Closing is December 5, 2020 at 5:30p.m.
• Sales Price: $481,500
• Buyer paid Earnest Money at time of offer: $3,500
• Buyer is getting a conventional loan with a 20% down payment
• Sellers existing loan payoff amount is $289,000
• Seller also has a HELOC with a payoff amount of $32,653
• The Seller has agreed to give the Buyer a credit in the amount of $1,500 for inspection related repairs at closing.
• Due to concerns over property line boundaries, the Seller has agreed to pay for the $150 cost of an Improvement Location Certificate (ILC). This will be collected by the title company and remitted to the surveyor directly.

• Lender fees:
  • Appraisal $650.00
  • Credit Report Fee $21.93
  • Document preparation fee $450
  • Flood Certification Fee $8.00
  • Origination Fee $845
  • Lenders Title Insurance $500
  • Owners Title Insurance $821.36 (Seller paid expense)
  • Recording Fee $176

• 2019 Property taxes not yet paid by the Seller are $2,173.79
• 2020 Property taxes- will not be paid until 2021

(*hint: 2020 is a leap year)

• Escrow/Reserves: Lender requires a 3-month reserve for taxes and insurance. (*hint- escrow/reserves refer to a particular amount of money the lender requires to be set aside in an escrow account to pay for property taxes or insurance premiums at a later date). This is collected from the Buyer at closing.
• Buyers Hazard Insurance premium is $1,476 per year.
• Settlement/Closing Fee $300, to be split equally between Buyer and Seller

The Listing Broker is charging commission of 6%

		Seller		Buyer
	Item	Debits	Credits	Debits	Credits
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21	Purchase Price Earnest Money Principal amount of new loan 1st Loan Payoff 2nd Loan Payoff Taxes for _2019________ Taxes for _2020 (# of days: Appraisal Fee Credit Report Fee Document Preparation Fee Flood Certification Fee Origination Fee Lender's Title Insurance Owner's Title Insurance Recording Fee Escrows Deposited with Lender 16a. Hazard Insurance Reserve 16b. Property Tax Reserve Real Estate Closing Fee Seller Concessions Improvement Location Certificate Broker's Fee Subtotals Balance due to/from: Total