24 of 43 - A property was listed for $96,000 with ABC Real Estate Company. The s

Question

24 of 43 - A property was listed for $96,000 with ABC Real Estate Company. The seller agreed to pay ABC a flat fee of $5,500 at closing if they or any other company procured a buyer. The seller's loan balance after the June 1st payment was $39,360 at an interest rate of 10%. The lender is demanding interest from the seller through the date of settlement, June 15. The closing is set for June 15. Taxes for the year are $600.00, and they are paid in arrears and prorated at closing. The agreed-upon purchase price was $94,000.00. How much will the seller net from this transaction? Assume the 360-day method for prorating interest, and the 365-day method for prorating taxes. Also, assume the seller owns the day of closing. a. $45,703.00 b. $48,703.00 c. $94,000.00 d. The seller will owe money in this transaction and will be very unhappy with the real estate agent.

Explanation / Answer

Price of property 94000 Less: Flat fee 5500 Loan amount 39360 Interest 39360*10*15/360. (June 1 to June 15) 164 Property Tax $600*166/365 (1 jan to 15 June 166 days) 272.9 Seller net from this transaction 48703 Ans b

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