Chapter 7

The closing statement

Debits, credits and the cash that changes hands

An explorable chapter on the settlement statement: which items are debits and credits for buyer and seller, the buyer's cash to close, the seller's net, and how prorations are entered.

1. 7.1
   The buyer's cash to closeDebits − credits = cash the buyer brings
2. 7.2
   The seller's netPrice − what the seller owes = what the seller takes
3. 7.3
   Where prorations landWhoever holds the other's money is debited
4. 7.4
   Sort the statementEvery line is a debit or a credit, on one side or both
5. 7.5
   When the deal falls apartEarnest money belongs to no one until the parties agree
6. 7.6
   Build both statementsDebits on one tower, credits on the other, cash fills the gap

1 interactive 3D scene · 2 slider tasks · 3 practice sets · 14 questions