Which of the following would not be a debit to the seller at closing?

Which of the following would not be a debit to the seller at closing?

• A. IRS lien
• B. Amount of buyer's new loan
• C. Amount of the loan the buyer is assuming
• D. Broker's commission

Answer: (B)

In a real estate transaction, a debit is an amount that represents a charge or cost incurred by a party, while a credit represents an amount that reduces the costs they owe or provides funds to them. The amount of the buyer's new loan is not considered a debit to the seller because it does not directly affect the seller's proceeds from the sale of the property. Instead, it is a credit to the buyer, as it represents funds the buyer is using to purchase the property. This means that while the buyer is borrowing money to complete the transaction, that amount is not a liability or cost for the seller. On the other hand, items such as an IRS lien, the amount of the loan the buyer is assuming, and the broker's commission are all costs that would be deducted from the seller's proceeds at closing. The IRS lien would need to be satisfied before the seller can receive their net proceeds. Similarly, if the buyer is assuming a loan, that obligation typically translates into a debit for the seller, as it may involve paying off existing debts associated with the property. The broker's commission is also a clear debit against the proceeds, as it is a fee that the seller must pay to the broker facilitating the transaction. Thus, the amount of

In a real estate transaction, a debit is an amount that represents a charge or cost incurred by a party, while a credit represents an amount that reduces the costs they owe or provides funds to them.

The amount of the buyer's new loan is not considered a debit to the seller because it does not directly affect the seller's proceeds from the sale of the property. Instead, it is a credit to the buyer, as it represents funds the buyer is using to purchase the property. This means that while the buyer is borrowing money to complete the transaction, that amount is not a liability or cost for the seller.

On the other hand, items such as an IRS lien, the amount of the loan the buyer is assuming, and the broker's commission are all costs that would be deducted from the seller's proceeds at closing. The IRS lien would need to be satisfied before the seller can receive their net proceeds. Similarly, if the buyer is assuming a loan, that obligation typically translates into a debit for the seller, as it may involve paying off existing debts associated with the property. The broker's commission is also a clear debit against the proceeds, as it is a fee that the seller must pay to the broker facilitating the transaction.

Thus, the amount of