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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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?