Reference no: EM132958328
Problem 1: Fill in the two blank worksheets, "Buyer's Estimated Net Cost" and "Seller's Estimated Net Proceeds," based on the information below. You must decide which amounts are credits or debits for the seller or the buyer, prorate certain expenses between the two parties, and calculate the broker's commission. (use a 365-day year.)
Purchase price for the home..................................................... $500,000.00
Broker's commission................................................................................... 6%
Closing date....................................................................................... May 1st
Escrow fees......................................................................................... $500.00
Property taxes (seller has paid taxes through end of tax year) $6,500.00
Good faith deposit........................................................................ $20,000.00
Purchase loan.............................................................................. $450,000.00
Appraisal fee...................................................................................... $400.00
Credit report fee.................................................................................. $75.00
Origination fee................................................................................. $4,500.00
Discount points.............................................................................. $27,000.00
Prepaid interest............................................................................... $2,200.00
Lender's title insurance...................................................................... $900.00
Inspection fees (to be paid by buyer)............................................ $600.00
Hazard insurance............................................................................... $475.00
Buyer's attorney's fees...................................................................... $350.00
Buyer's recording fees......................................................................... $50.00
Existing loan reserve account credit............................................... $900.00
Existing loan payoff..................................................................... $250,000.00
Interest due on existing loan............................................................. $850.00
Prepayment penalty on existing loan................................................. $0.00
Other liens and assessments................................................................. $0.00
Owner's title insurance...................................................................... $725.00
Seller-paid discount points.................................................................... $0.00
Documentary transfer tax................................................................. $550.00
Required home repairs (to be paid by seller)............................. $4,500.00
Seller's attorney's fees........................................................................... $0.00
Seller's recording fees.......................................................................... $35.00