A California escrow officer is preparing for the closing of a residential transaction. Which of the following is NOT a standard item that appears as a debit (charge) to the seller on the closing statement?
Correct Answer
A) Buyer's loan origination fee charged by the new lender
The buyer's loan origination fee is a charge to the BUYER, not the seller. The origination fee is charged by the buyer's lender for processing the buyer's new loan and appears as a debit on the buyer's side of the closing statement. It is not the seller's responsibility unless specifically negotiated as a seller credit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.
Marketable title is title that is free from reasonable doubt as to who the owner is and free from liens, encumbrances, or defects that would cause a reasonable buyer to hesitate before purchasing. It is also known as merchantable title.
Probate is the legal process by which a deceased person's will is validated by the court and their estate is administered, including the transfer of real property to the named beneficiaries or heirs.
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Under standard California residential purchase practice, how are escrow fees typically allocated between buyer and seller?
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During a California escrow, the preliminary title report reveals a recorded IRS federal tax lien against the seller. The seller acknowledges the lien but insists the debt was satisfied months ago. What is the escrow officer's correct course of action?