On June 15, Jane and Jerry Jones (“Sellers”) listed their Flagstaff home for $39
ID: 2654688 • Letter: O
Question
On June 15, Jane and Jerry Jones (“Sellers”) listed their Flagstaff home for $399,500 with Re/Max Peak Properties and agreed to pay a 6% commission on the sale price. They have a mortgage for $361,000 remaining on the home.
Sam and Sue Smith (“Buyers”) offered 3% less than the listed price. The offer was accepted by Jane and Jerry. At that time, the Buyers put down $1,000 of earnest money.
The Buyers will put 20% down and finance the rest through EverBank. The sale will close on July 1st at which time the Buyers will take possession. EverBank requires a loan origination fee of 1% of the value of the loan along with a property appraisal which will cost $400 and a credit report at a cost of $25.
Taxes for the current year were $1,500 and were paid in full by the Sellers.
The Buyers’ title insurance policy will cost $800, and the Sellers’ title insurance policy will be $1,690.
Homeowner’s insurance will cost the Buyers $350.
Recording the deed will cost $50 (equally split between the Buyers and Sellers).
Endorsements of $150 would be paid by the Buyers.
Courier fees will be $25 for the Buyers and $25 for the Sellers.
All pro-rations are based on a 30-day month.
Please fill out the table below based on the given information
Description
Cash
Description
Cash
Contract Sales Price
Contract Sales Price
Settlement Charges
Gross Amount Due to Seller
Items Payable in Connection with a Loan
Loan Origination Fee
Reductions in Amount Due Seller
Appraisal Fee
Brokerage Commission
Homeowner's Insurance
Payoff of Mortgage Loan
Credit Report
Title Charges
Title Charges
Title Service and Title Insurance
Title Service and Title Insurance
Deed Preparation
Deed Preparation
Government Recording Charges:
Government Recording Charges:
Courier Fees
Endorsements
Courier Fees
Adjustments for Items OverPaid by Seller
County Taxes
Gross Amount Due from Borrower
Total Reductions in Amount Due Seller
Amounts Paid by or on Behalf of Borrower
Deposit of Earnest Money
Gross Amount Due to Seller
Principal Amount of New Loan
Less Reductions in Amount Due Seller
Cash at Settlement to Seller
Adjustments for Items OverPaid by Seller
County Taxes
Total Expenses
Purchase Price
Total Paid by the Borrower
Expenses as % of Price
Gross Amount Due from Borrower
Less: Total Paid by the Borrower
Cash at Settlement from Borrower
Total Expenses
Purchase Price
Expenses as % of Price
Description
Cash
Description
Cash
Contract Sales Price
Contract Sales Price
Settlement Charges
Gross Amount Due to Seller
Items Payable in Connection with a Loan
Loan Origination Fee
Reductions in Amount Due Seller
Appraisal Fee
Brokerage Commission
Homeowner's Insurance
Payoff of Mortgage Loan
Credit Report
Title Charges
Title Charges
Title Service and Title Insurance
Title Service and Title Insurance
Deed Preparation
Deed Preparation
Government Recording Charges:
Government Recording Charges:
Courier Fees
Endorsements
Courier Fees
Adjustments for Items OverPaid by Seller
County Taxes
Gross Amount Due from Borrower
Total Reductions in Amount Due Seller
Amounts Paid by or on Behalf of Borrower
Deposit of Earnest Money
Gross Amount Due to Seller
Principal Amount of New Loan
Less Reductions in Amount Due Seller
Cash at Settlement to Seller
Adjustments for Items OverPaid by Seller
County Taxes
Total Expenses
Purchase Price
Total Paid by the Borrower
Expenses as % of Price
Gross Amount Due from Borrower
Less: Total Paid by the Borrower
Cash at Settlement from Borrower
Total Expenses
Purchase Price
Expenses as % of Price
Explanation / Answer
On June 15, Jane and Jerry Jones (“Sellers”) listed their Flagstaff home for $399,500 with Re/Max Peak Properties and agreed to pay a 6% commission on the sale price. They have a mortgage for $361,000 remaining on the home. Sam and Sue Smith (“Buyers”) offered 3% less than the listed price. The offer was accepted by Jane and Jerry. At that time, the Buyers put down $1,000 of earnest money. The Buyers will put 20% down and finance the rest through EverBank. The sale will close on July 1st at which time the Buyers will take possession. EverBank requires a loan origination fee of 1% of the value of the loan along with a property appraisal which will cost $400 and a credit report at a cost of $25. Taxes for the current year were $1,500 and were paid in full by the Sellers. The Buyers’ title insurance policy will cost $800, and the Sellers’ title insurance policy will be $1,690. Homeowner’s insurance will cost the Buyers $350. Recording the deed will cost $50 (equally split between the Buyers and Sellers). Endorsements of $150 would be paid by the Buyers. Courier fees will be $25 for the Buyers and $25 for the Sellers. All pro-rations are based on a 30-day month. Please fill out the table below based on the given information Buyer Seller Description Cash $ Description Cash $ Contract Sales Price 399500 Contract Sales Price 399500 Settlement Charges 3829 Gross Amount Due to Seller 404329 Items Payable in Connection with a Loan Loan Origination Fee 3054 Reductions in Amount Due Seller 1500 Appraisal Fee 400 Brokerage Commission 23970 Homeowner's Insurance 350 Payoff of Mortgage Loan 306356 Credit Report 25 Title Charges 1715 Title Charges 825 Title Service and Title Insurance 1690 Title Service and Title Insurance 800 Deed Preparation 25 Deed Preparation 25 Government Recording Charges: 25 Government Recording Charges: 175 Courier Fees 25 Endorsements 150 Courier Fees 25 Adjustments for Items OverPaid by Seller 1500 County Taxes 1500 Gross Amount Due from Borrower 404329 Total Reductions in Amount Due Seller 1740 Amounts Paid by or on Behalf of Borrower 306356 Deposit of Earnest Money 1000 Gross Amount Due to Seller 404329 Principal Amount of New Loan 305356 Less Reductions in Amount Due Seller 1500 Cash at Settlement to Seller 96473 Adjustments for Items OverPaid by Seller 1500 County Taxes 1500 Total Expenses 3240 Purchase Price 404329 Total Paid by the Borrower 307856 Expenses as % of Price 0.80 Gross Amount Due from Borrower 404329 Less: Total Paid by the Borrower 307856 Cash at Settlement from Borrower 96473 Total Expenses 4829 Purchase Price 404329 Expenses as % of Price 1.19
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