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13. Has a lot to do with closing the transaction. The reason thats going going to be important to you as agents is because as agents.
You are responsible the accuracy of the settlement. Statement. Sometimes referred to as the other one behind.
One is going to be a history of where all the money meant in the transaction. Yeah i could lecture you about time on chapter. Fifteen.
However if you just simply know the numbers youre probably going to come out pretty close doing well in this particular chapter. When i look at numbers on the settlement statement. What im basically looking at is how we can invite others and im looking at seller.
Not the buyer and seller will look at debits and credits. So im going to create just a very simple chart of how i look at this we need to get the buyer. Hes going to have certain debts and hes going to have certain credits.
The seller similarly will have certain credits and so your debts. If you have had accounting classes suspend anything to be learned in accounting classes. So some accountant.
Told. Me that they use the words. A little bit different in accounting classes.
So just throw that out heres what i wanted understand when youre talking about this chapter. A heaviness of the metro. They definitely the buyer is something he has to pay a credit on the other hand is money that hes received so understand pointing a credit reduces the amount of cash that the buyer has to bring to us and credit to the seller is money that he could potentially wall up with a debit to the seller reduces the amount that hes going to walk home a logical clock on probably 90 of this particular check so just relax your mind.
And see. If you can. Answer the following question the sale price of this home is.
200000 the sale price is 200000. What were trying to do is account for where the money went in the transaction. So to the buyer.
Whats the sale price went to be a depth or a credit. It is detective endeavor. Its his ultimate debt because thats the money he needs to figure out how to come up with and close to the buyer.
The sale price is going to be again. Whats the set wise would lead to the seller. Thats money even producible movement.
So its the seller. Spokesman craig. Not all items are what we call double entry items this one just happened to be because the sale price impacts.
When tiger settled us. Okay. Lets talk about something that only the bugger is.
Hitting at 80. Percent love to buy. Me.
Love. Houses. 200000.
80 percent of the electric. Ceased the buyers been in 160000. One okay.
How do you think the one of them is going to appear to buyer. Its going to be a deaf person via credit. Its actually credit and the reason.
It is is because he reduces the amount of cash that the buyer has to bring the closer. So. I thought sounds weird to say.
London. Is accredited. Hey overlooking force how much you have to bring you close so.
Technically the loan amount is going to be a credit to fire and then this how i said it was eighty percent one tonight sometimes we take my lens magnus this table of gives you just play into place this is about having the effectively sell is just part of the overall 200000. Season. Again.
You know what that made it that make them a loan. The buyer of money they said were going to charge you a 1 one origination fee. How is the loan origination fee going to appear as a definite point credit loan.
Origination fee i said it was 1 1 of 160000 is 1600 debit to the bible. Again theres a lot of origination fee happy to do the seller not really not really because its nice one they also said while charging to discount points to discount points. How much is the discount for house one percent in one.
Man so therefore to two. Percent so 3200. Lets talk about some things that are going to be holy in this class.
When were solving the southern state. We need to get assemble statement and i dont have room for all of it on the board. Im just trying to help you think through this there are there are we get ton of things on the buyers.
There are the always three on the seller side another might be more if we tell you that some that some responsible for 22 summer. But theyre great things that are always going to go on the seller side the seller always pays the commission. The seller always pays.
The commission. The seller always pays d. Preparation d.
Preparation. D. River.
The seller is the grant. Or if hes will self yourself. If you should at least take creativity thats motivated property to you and the seller always pays excise tax.
Wheres junction one even just asking for an excise tax. The other day again so it always pays excise tax. Lets go ahead and solve what that is real quick in the problem of the taking that the commission is 6.
Now agent calculations very quickly in their careers. However you do understand commissions of a home sell whats not. Moving right so you be panel show my 6 of.
200000 is 12000. Wheres that been shown so much they definitely need self be honest admission. Our problems are the deep preparation cost 125.
Typically what happens is the the attorney will come up in this engagement. Say hey those are up dis youre selling thats why we prepared deep for nsa everybody call by in instructional. You will be just go ahead and take care of it in less time this against people say the church you know go ahead any night.
Its very simple. The attorney. What they were charged with though their guitar somewhere around 125.
Do you see what home i put it in does it make sense deep breath let me tell you a trick from the exam. The seller pays for deep threat who makes for recording the ds. The bible the buyer base reformed to need the seller prepared to convey it.
But whats his bp made for the buyer equals to reported to protect his eye. The property. So lets say that recording the ip is going to cost.
Theres something when the recording is going for today lets say 28 bucks. This is a little like a little bit like spot find evidence okay and then just to remind you the excise past and sometimes im old school. So you may easily hear me refer to these revenue stamps.
Thats actually an antiquated term the corporate from todays excise tax does in. Fact remember the formula income tax was 100 per 513 for severe up so take the sale price divided by 500 in charge into the cell in this. Case 200000.
Divided by 500 is some american dollars. Now clearly this is not comprehensive. Im just giving you an example of how this works.
But lets say these are the only items that come up heres what you know possibly in that bill you add up the virus depths the buyers depths of this case. The flames from the 200 4848. Some i take me home managed to get a chance thats right and his credits are 160000.
So if youre probably comes the important question here in what a question is the difference between his debits and credits represents what how much the buyer has to bring in my scenario. Again not. Comprehensive but in my.
Scenario he would need to bring more than. 44000 848 on the seller. Side he had total credits of 200000.
Its not terribly uncommon for the seller. Enough. I had a lot of credits other than the purchase price thats really not coming now obviously ive lost.
I like were right here for example. This guy apparently has its has paid off because if he had money in his bank even right. But apparently he things how softly.
He owes twelve thousand five twenty five. So we subtract this type of credit from his total debits or include subtract. It from his credit.
Actually and that leaves us with 187 475 or something like that. And what does that number represent how much the seller is walking home from closing. Okay.
That is chapter 15 in a nutshell right there if you can handle that philosophy youre going to be in good shape did you see anything there that scared you do you recognize that youll youll run into issues like this he who benefits pays see if that makes sense to you you know why is the plus divided in the closure cost this is love at the other place. Why is this overpaid. The commission.
Name is on this house okay so few minutes hey. Theres several mantra. That you can that you can associated is that youre going to do that if you dont find spot right there dont .
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