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A seller sold a property for $375,000, with the closing on July 1st, in a jurisdiction where the buyer pays for the day of closing. The seller had a mortgage balance at the time of closing of $301,000, and had recently paid invoices of $400 for the second quarter's water and electricity, $1,200 for new appliances, and roofing repairs of $700. Based only on these items, how much will the seller receive at closing?
Sale price = $375,000
Mortgage payoff = $301,000
Seller prepaid invoices (utilities, appliances, roof) are already paid and not reimbursable through closing unless agreed. They do not affect the closing statement.
Buyer pays closing day (July 1), so no adjustment required for that day.
375
,
000
301
,
000
=
74
,
000
375,000301,000=74,000
Thus, the seller's net proceeds = $74,000.