28 terms

Closings- Debits and Credits

STUDY
PLAY
Sales Price
DEBIT buyer; CREDIT seller; appears on both buyer's and seller's settlement statement
Earnest money
CREDIT buyer; DEBIT broker; buyer's settlement statement only
Assumed loan amount
DEBIT seller; CREDIT buyer; "Principal remaining on loan assumed by buyer"; appears on both buyer's and seller's settlement statement
Seller-carry loan amount
DEBIT seller; CREDIT buyer; "Reduces seller's cash at closing"; appears on both buyer's and seller's settlement statement
Broker's commission
DEBIT seller, CREDIT broker; appears only on seller's settlement statement
Owner's title Insurance
DEBIT seller; CREDIT broker; appears only on seller's settlement statement
Mortgagee's title insurance
DEBIT buyer; CREDIT broker; buyer's settlement statement
Notary Fee for Warranty Deed
DEBIT seller; CREDIT broker; appears only on seller's settlement statement
Recording of Warranty Deed
DEBIT buyer; CREDIT broker; appears only on buyer's settlement statement
Notary fee for deed of trust
DEBIT buyer; CREDIT broker; buyer's statement only
Tenant Security Deposits
DEBIT seller; CREDIT buyer; appears on both statements
Rents
DEBIT seller; CREDIT buyer; appears on both (prorated)
New loan amount
CREDIT buyer; SINGLE ENTRY; buyer's settlement statement only
Net Loan Proceeds
DEBIT broker only; does not show up on either buyer's or seller's settlement statements
Taxes for the preceding year if unpaid
DEBIT seller; CREDIT broker in assumption otherwise single entry; appears only on seller's statement
Special taxes (special assessments)
If assumed (by buyer) no entry, if paid, DEBIT seller; only on seller's statement
Everything paid by lender is single-entry; what items are paid by the lender?
3. Trust Deed- payable to: New Loan; CB
5. Trust Deed- payoff to: Old Loan; DS
11. Recording: Warranty Deed; DB
12. Trust Deed; DB
13. Release; DS
15. Documentary Fee; DB
16. Certificate of Taxes Due; DB
17. Taxes for Preceding Year; DS
23. Premium for New Hazard Insurance; DB
24. Hazard Insurance Reserve; DB
27. Loan Discount Points; DB or DS
28. Loan Origination Fee; DB
29. Interest on New Loan: DB
30. Survey; DB or DS
31. Appraisal Fee; DB or DS
Recording Warranty Deed
single entry; DB
Release
single entry; DS
Documentary Fee
single entry; DB
Certificate of Taxes Due
single entry; DB
Premium for New hazard Insurance
single entry; DB
Hazard Insurance Reserve
single entry; DB
Loan Discount Points
single entry; DS or DB
Loan Origination Fee
single entry; DB
Interest on New Loan
prorated until end of month; single entry; DB
survey
single entry; DS or DB
Appraisal Fee
single entry; DS or DB
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