K. Charges and credits of the Seller

Section 400: Credits to the Seller

Line 401: Sales price of the property (from Purchase Contract)

Line 406 to 408: Prorations of taxes and assessments. These lines are used to prorate taxes and assessments between the Buyer/Borrower and the Seller when the Seller has paid these items for the current tax period prior to closing. The Buyer/Borrower is charged for his/her share in Lines 106 to 108. The Seller is given a corresponding credit in Lines 406 to 408.

Line 420: Total of sales price and other credits to the Seller (total of lines 401 to 412)

Section 500: Charges/Reductions to the Seller

Line 502: Total closing charges of the Seller from page 2 line 1400

Line 504: Amount due to pay off the Seller’s first mortgage (from the lender’s payoff letter)

Line 505: Amount due to pay off the Seller’s second mortgage (from the lender’s payoff letter)

Line 506: Money previously given to the Seller (or realtor) by the Buyer at the signing of the Purchase Contract to show that the Buyer intends to purchase the property (from Purchase Contract). If the realtor is holding this money, it will be deducted from the realtor commission on Line 701 or Line 702)

Line 510 to 512: Prorations of taxes and assessments. These lines are used to prorate taxes and assessments between the Buyer/Borrower and the Seller when the Seller has not paid these items for the current tax period prior to closing. The Seller is charged for his/her share in Lines 510 to 512. The Buyer/Borrower is given a corresponding credit in Lines 210 to 212.

Line 520: Total of Seller charges and other reductions to the amount due to the Seller (total of lines 501 to 519)

Section 600: Calculation of amount due to or from the Seller

Line 601: Total credits to the Seller (amount from Line 420)

Line 602: Total charges/reductions to the Seller (amount from Line 520)

Line 603: Total amount due to (or from) the Seller at closing (Line 601 minus Line 602). If money is due from the Seller, the Seller must bring this amount to closing in the form or a Cashier’ check. If money is due to the Seller, the Seller will receive a check in this amount at closing from the title company.