MICHAEL R. KADOCH PA.
MK REAL ESTATE & CORPORATE LAW FIRM
The Michael R. Kadoch P.A offers you experienced escrow settlement agents who are well trained in real estate closing procedures and the issuance of title insurance. Call Us Today For A FREE Consultation.
Attorneys escrow accounts are regulated by the the Florida bar. Our law firm act as an objective third party who follows the instructions of the parties involved.
Our wealth of technical experience and knowledge of how to keep track of all the transaction details is your assurance of a smooth closing. We get the job done with efficiency and accuracy.
You are welcome to contact us for more specific answers about your escrow settlement questions, or use the links provided below:
As a real estate lender, protection of the collateral for your loans is of utmost importance to you, whether you are making multi-million dollar loans on commercial shopping centers or $20,000 equity line loans to homeowners. We have a variety of products, each designed to respond to a specific need. Many years of experience coupled with one of the highest insurance reserves in the industry assure you of the greatest level of protection available. Regardless of size, the experienced, dedicated members of our staff will give every transaction the attention it deserves.
Life Of An Escrow
It all begins with the offer and acceptance skillfully negotiated by the real estate agents representing Buyer and Seller.
- Tenders a written offer to purchase (or accepts the Seller’s counter-offer) accompanied by a good faith deposit amount.
- Approves and signs the escrow instructions and other related instruments required to complete the transaction.
- Approve the preliminary report or title commitment and any property disclosure or inspection report required in the purchase and sale agreement.
- Approves and signs new loan documents and fulfills any remaining conditions contained in the contract, lender’s instructions and/or the escrow instructions.
- Deposit funds necessary to close the escrow.
- Approve any changes by signing amendments in the escrow instructions.
The Lender (when applicable)
- Accepts the new loan application and other related documents from the Buyer(s) and begins the qualification process.
- Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.
- Submit the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.
- Informs Buyer(s) of loan approval terms, commitment expiration date and provides a good faith estimate of the closing costs.
- Deposit the new loan documents and instructions with the settlement agent for Buyer’s approval and signature.
- Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.
The Escrow Settlement Officer
- Receive an order for escrow and title services.
- Place order for the preliminary report or title commitment for the subject property from us .
- Acts as the impartial “stakeholder” or depository, in a fiduciary capacity, for all documents and monies required to complete the transaction per written instructions of the principals.
- Prepare the escrow instructions and required documents in accordance with terms of the sale.
- With the authorization from the real estate agent or principal, orders demands on existing deeds of trust and liens or judgments, if any. For assumption or subject to loan, orders the beneficiary’s statement or formal assumption package.
- Reviews documents received in the escrow: preliminary report or title commitment, payoff or assumption statements, new loan package and other related instruments.
- Review the conditions in the lender’s instructions including the hazard and title insurance requirements.
- Present the documents, statements, loan package(s), estimated closing statements and other related documents to the principal(s) for approval and signature, and requests the balance of the buyer’s funds.
- Receive the proceeds of the loan(s) from the lender(s).
- Determines when the transaction will be in the position to close and advises the parties.
- Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Recorder and orders the title insurance policies. Depending on the property location, the recordation of the documents may occur after the closing date.
- Close the transaction by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing encumbrances and other obligations.
- Deliver the appropriate statements, funds and remaining documents to the principals, agents and/or lenders.
- Accept Buyer’s Offer to Purchase and initial good faith deposit to open escrow.
- Submit documents and information to escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements.
- Approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.
- Orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (Deposit Receipt).
- Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the payoff demands and/or beneficiary’s statements.
- Approve any final changes by signing amendments to the escrow instructions or contract us.
- Receive an order for title service.
- Examines the public records affecting the real property and issues a preliminary report or title commitment.
- Determines the requirements and documents needed to complete the transaction and advises the escrow settlement officer and/or agents.
- Reviews and approves the signed documents, releases and the order for title insurance, prior to the closing date.
- At this point we records the signed documents with the County Recorder’s office and prepares to issue the title insurance policies.
New Communities Escrow
Our law firm maintains escrow and title department in Florida that specialize in serving the needs of our developers, builders and lenders in the communities we serve . We provide high quality title services and escrow coordination for increased liability and high volumes of transactions that exceed the inherent needs of the real estate professionals involved in the development of real estate. We have built a reputation for efficiency in smoothly processing land acquisitions, demolition, new construction and sale-out transactions. Whether you’re considering an industrial park subdivision, or accumulating parcels for a master planned community, we can assist you with every phase of development.
We know that builder developers require speed, accuracy and confidentiality in the fulfillment of their title needs. That’s why builders and developers choose us .
We have a history of applying leadership and creative concepts in title coverage of land acquisition and developments. including insuring air rights over property, title insurance for condominiums, interim-construction disbursements, inflation rider and closing services.
As a result, we enjoy the closest possible relationship with the real estate, mortgage lending and building industries . Our personal service is more than just title and real estate specialists and legal service . Our team and representatives are true professionals, experienced real estate title experts with detailed knowledge of real estate as well as an intimate understanding of the local markets and customs in our communities.
Commercial Escrow Settlement
A commercial escrow is one that involves the transfer or encumbrance of property other than residential, such as office, research, retail and industrial properties.Lawyers Title recognizes that there is no such thing as an easy commercial transaction. Each transaction is unique and the main role of the settlement agent becomes that of a coordinator and problem solver. Often a transaction will become so complex that the settlement agent is the only person who has a grasp of the entire transaction and all closing requirements. Handling commercial escrows requires unique skills on the part of the settlement agent.For more specific information regarding commercial real estate transactions and the processes and procedures required to successfully close, select from the Commercial Closing Topics index provided.
Commercial Closing Topics
- Opening the Escrow Transaction
- Fee Quotes
- Deposit Funds
- In General
- Coordinating Title Issues
- Information Gathering
- Organization Documents and Verifying Authority
- Demand/Lien Information
- Rents, Tenant Deposits and Estoppels
- Tax Deferred Exchange
- 1099-S Reporting
- Property and Casualty Insurance Requirements
- UCC Search
- UCC Filings
Opening the Escrow TransactionAn escrow transaction is commonly opened by the real estate agents or attorneys involved in the transaction. The specific transaction information required to open the order may be communicated to the escrow settlement officer by telephone, facsimile, by email or in person. The following minimum information is required at the time of opening:
- Sale Price/Loan Amount
- Property Address(es) and/or Legal Description
- Assessor’s Parcel Number(s) (if available)
- Policy Liability Amounts (if available)
- Contact Information for Professionals (such as listing/selling agent, attorneys and lenders)
Escrow closing fees are provided by quote based on the closing location and the complexity of the transaction. To obtain a closing fee quote, use the Find an Office option located on this page to find an escrow closing office near you.
Commercial escrow deposits are typically large sums of money held for long periods of time. Frequently multiple deposits are required through the course of the transaction as contract contingencies are fulfilled. At the time of contract negotiations, the principals to the transaction will typically decide which party will be entitled to any interest earned on those deposits at the successful close or cancellation of the transaction.The party entitled to the earned interest will have to complete an authorization provided by the escrow settlement officer, as well as a Form W-9 providing the taxpayer identification number for the earning party. These two documents are required by the escrow settlement agent and the bank that will be required to hold the deposit in trust on behalf of the escrow settlement agent and the principals.The bank will report the interest earned to the Internal Revenue Service based on the taxpayer identification number provided.
The escrow settlement agent will work closely with the principals and their representatives to ensure title issues are resolved, that authoritative documents are requested from the principals, future deposits and release of funds occur within the agreed upon time constraints.
Coordinating Title Issues
Escrow settlement agent will make requests for inspections, survey requirements, owner’s affidavit, leases (recorded and unrecorded) prior to closing the transaction.
During the contingency period, the settlement agent will work to gather the information and documents necessary to prepare the closing statement and closing documents. The list of documents and information required by the settlement agent may be revised throughout the course of the transaction as documents and information are received, the terms of the purchase agreement change, or if the parties request any additional services or products.The initial list of documents and information needed by the settlement agent are as follows:
- Organizational Documents for the Entities
- Copies of Leases
- Rent Roll with security deposits
- A list of service contracts or other items to be prorated at closing
- A list of personal property to be included in the Bill of Sale
- At least two (2) copies of the survey
- Original documents as attached as exhibits to the contract for execution at closing
Organization Documents and Verifying Authority
When the seller or buyer is not a natural born person, the settlement agent and title insurer must verify that the entity was properly formed and that the person(s) signing the documents are duly authorized and have the power to sell and/or loan money, or to buy and/or borrower money. If the closing documents are not signed by a duly authorized representative of the corporation, trust, company, partnership, etc., the transaction may be voidable.
The settlement agent will obtain information from the Seller for all existing liens which will have to be satisfied or removed at closing. This includes information on trust deeds or mortgages to be paid off, and also includes tax liens, judgments, and defects in title or unrecorded leases. If a Seller is deceased, probate documents will be required. A Seller in bankruptcy will need a court order.
There may be many items to prorate in a real estate transaction. As in any other transaction, how an item is prorat3ed will depend upon whether or not it is paid in arrears or in advance.Items to prorate at closing include:
- Real estate taxes
- Personal property taxes
- Special assessments
- Property owner’s assessments
- Common area maintenance fees
Rents, Tenant Deposits and Estoppels
The Rent Roll is a list of tenants and units, rents due and delinquent, and tenant deposits. It is customarily obtained by the settlement agent from the seller or property manager. Rent may also include other items such as rental tax, liability insurance, common area maintenance, taxes, etc.There are two distinct methods to prorate rents at closing:1. Rents actually collected
2. All rents, as if collectedThe purchase agreement should state the manner in which rents are to be prorated. If not, the settlement agent must ask the question of both sides of the transaction.Tenant deposits are not prorated, however, the entire amount of the deposits are transferred from seller to buyer at closing in one of two ways:1. charge (debit) the seller and credit the buyer (usual practice); or
2. charge the seller and issue a check to the buyer (by special request)Tenant deposits may include such items as security or damage deposits and last month’s rent, which are usually itemized on the rent roll.A Tenant Estoppel is a document signed by the tenant confirming the terms of the lease. By the nature of an “estoppel”, the tenant would be estopped (prevented) from asserting any other rights in the future other than those stated in the lease.Tenant Estoppels are typically a contractual issue between buyer and seller. It is the responsibility of the seller to provide a form of Estoppel that is acceptable to the buyer, to obtain the tenants’ signature and to deliver the estoppels to the buyer.
Tax Deferred Exchange
Section 1031 of the Internal Revenue code of 1986 (as amended), offers real estate investors an opportunity to build wealth and save taxes. In a tax deferred exchange, the investor (Exchanger) can dispose of investment property and defer the capital gains tax by leveraging all their equity into replacement property. Two requirements must be met to defer the capital gain:1. The Exchanger must acquire “like-kind property”
2. The Exchanger cannot take “constructive receipt of funds” (receive proceeds)Here is what happens in such an exchange:
- The Exchanger must enter into an exchange transaction prior to closing on the relinquished property.
- The Exchanger enters into an Exchange Agreement with a Qualified Intermediary (Exchange Accommodator)
- The Intermediary acquires the relinquished property from the exchanger and transfers it to the buyer by a direct deed from the Exchanger
- The proceeds from the relinquished property are assigned to and held by the Intermediary in a separate, secure account.
- The Intermediary acquires the replacement property from the seller and transfers it to the Exchanger by a direct deed from the seller.
- The exchange funds are used by the Intermediary to purchase replacement property for the Exchanger.
There are strict time limits in which a tax deferred exchange must be completed with absolutely no extensions:
- The Exchanger has 45 days from the date the relinquished property closes to identify potential replacement properties in writing to the Intermediary. Once the 45 days has expired, the Exchanger may not change the property identification list and must close on one or more of the identified properties.
- The purchase of the replacement property must be completed within 180 days from the date of closing on the relinquished property.
Although property is deeded directly between seller and buyer, the Intermediary should be shown on the closing statement and should sign the closing statement on behalf of the Exchanger. The Exchanger approves the closing statement and typically signs all other closing documents.An Exchanger may also enter into a “Reverse Exchange”, in which the replacement property is purchased prior to closing on the relinquished property.A tax deferred exchange is also subject to 1099-S reporting and FIRPTA regulations and withholding.There are many things an investor must consider when thinking about entering into a tax deferred exchange. Interested parties should contact a tax advisor or an attorney who specializes in tax matters, and to speak directly to a qualified exchange accommodator.
The Internal Revenue Code requires that all proceeds from the sale or exchange of a real estate transaction be reported to the IRS. All real estate transfers are subject to 1099-S reporting, including commercial properties, regardless of whether or not there is any consideration paid for the property.All transferors (sellers) are subject to 1099-S reporting, including individuals, estates/trusts, partnerships, sole proprietorships, limited liability companies. Even foreign sellers are subject to 1099-S reporting, regardless of whether or not FIRPTA taxes are withhold and paid. Corporations are not subject to 1099-S reporting.
FIRPTA – Foreign Investment in Real Property Tax Act
Section 1445 of the Internal Revenue Code requires that the transferee (buyer) must deduct and withhold a tax equal to 10% (or other amount) of the total amount realized (total sale price or consideration on the disposition of a U.S. real property interest by a foreign person (transferor/seller). Taxes and forms must be submitted to the IRS within 20 days of the transfer.All real estate transactions/transfers, including exchanges, are subject to FIRPTA regulations; however, many commercial contracts contain provisions for the seller’s cooperation with FIRPTA compliance at closing.There are ten (10) different FIRPTA exemptions, including the Non-Foreign Certification (refer to IRS publication 515). The foreign transferor must prove to the buyer and to the settlement agent that an allowed exemption applies to the transaction.Because the buyer is held responsible by the IRS, the buyer should be kept in the loop regarding any matters pertaining to FIRPTA and foreign sellers. Many state’s (California and Hawaii) have their own FIRPTA regulations that are enacted if one or more of the properties are located within that state.
Property and Casualty Insurance Requirements
Insurance coverage is required to be evidenced at closing, if there is a new lender involved in the transaction. Sometimes the lender’s attorney will deal directly with the insurance company. The settlement agent will require contact information for the buyer’s insurance agent prior to closing.Depending on the type of property, and the Buyer, the method of paying insurance premiums can vary. A large client may have master policies and no premiums will be paid in escrow. A buyer may set up an installment and only a portion of the premium will be paid through escrow.
A lender or attorney may request a “proforma”. What they are asking for is a sample policy and samples of the endorsements they require at closing. The title examiner will prepare the “proforma” for delivery to the parties to the transaction.
An “endorsement” is a rider issued to a policy of title insurance that insures over a particular matter or provides additional coverage to the insured. Endorsements may be customized to meet the particular needs or concerns of the proposed insured or the nature of the property to be insured, and may be applicable to either the owner’s or the lender’s policy, or both.Whenever a title company is asked to endorse around or insure over a specific matter, there may be certain conditions that must be met depending upon the subject matter of the endorsement, before the endorsement can be issued. All endorsements are subject to approval by the title underwriter.
The title insurer will insure up to the total sale price or loan amount, and then employs another title insurance company to insure them. The premium paid to the re-insurance title company is deducted from the title fees; it is not an additional charge to the parties. Re-insurance is handled by the Title Department when requested by the proposed insured or is required based upon self-imposed or statutory title insurance limits.
The proposed insured may only allow the title insurance company to insure up to a certain amount (i.e. not the total sale price or loan amount). The insuring company must employ another title insurance company to insure the remainder of the sale price or loan amount. When there is co-insurance, the customer is charged based upon each company’s filed rates for the portion of the total liability covered by that company. The co-insurance company may be chosen by the customer.
A Uniform Commercial Code (UCC) search is conducted through the Secretary of State for any Financing Statements that may have been filed to perfect a lien on personal property in accordance with the Uniform Commercial Code. The search is conducted on name(s) of the Debtor(s) as well as the location of the property. This search is not a part of the preliminary report or commitment provided by the title insurer, but an outside provider company that specializes in such reports. There is an additional cost for the UCC Search, which cannot be determined until after the search is completed and provided to the settlement agent.A UCC Search through the Office of the Secretary of State is not conducted unless required under the terms of the purchase agreement or requested by one of the parties. The names to be searched must be provided to the settlement agent if any name other than the seller or buyer as it appears on the purchase agreement or preliminary report/title commitment are to be included in the search. The settlement agent needs to be provided the names to be searched in writing by the requesting party. The cost of the final report must be paid for by either buyer or seller. If the report is produced early in the transaction processing period, it may need to be updated prior to closing, resulting in additional charges.
Many lenders will require a UCC-1 Financing Statement to utilize personal property as additional security for their loan. A UCC-1 Financing Statement may be recorded in the County in which the real property is located. The UCC-1 is typically recorded concurrently with and after the deed of trust or mortgage instrument or as instructed by the lender.A UCC-1 Financing Statement should be filed with the Secretary of State in the jurisdiction of the location of the debtor. Enforcement of a debt secured with a UCC Financing Statement comes under the Uniform Commercial Code. It is actually the state filing that perfects the lien. In the case of an individual, it should be filed in the state in which they reside. In the case of a legal entity, it should be filed in the state in which the entity was organized. For example, if the debtor has its primary residence in Arizona, the UCC-1 would be filed with the Arizona Secretary of State. If the Debtor is a California Limited Liability Company, the UCC-1 would be filed with the California Secretary of State.The Secured Party and the Debtor should determine the location of recording and or filing of the UCC statement. The completed UCC-1 Financing Statement is normally provided by the lender.UCC-1 Financing Statements do not have to be signed by either the Debtor or Secured Party; however, they must be authorized. This means that the parties must instruct the settlement agent, in writing, to record the UCC with County Recorder and/or to file it with the Secretary of State, naming the county recorder and the state jurisdiction.Although the UCC-1 Financing Statement does not require signatures, any attachment such as the legal description or special terms and conditions may require the signature of the Debtor.A UCC-1 Financing Statement expires after five (5) years, unless a continuation is recorded and/or filed. It is the sole responsibility of the Secured Party to determine if a continuation is necessary and to record and/or file any continuation statement.
What Happens In Escrow Settlement?
An escrow is an arrangement in which a disinterested third party, called an escrow holder or settlement agent, holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer’s and seller’s instructions.
People buying and selling real estate often open a sale transaction with the settlement agent for their protection and convenience. The buyer can instruct the settlement agent to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The seller can instruct the settlement agent to retain possession of the deed to the buyer until the seller’s requirements, including receipt of the purchase price, are met. Both rely on the settlement agent to carry out faithfully their mutually consistent instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out.
At our firm we provides professional escrow settlement services that are a convenience for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan commitments and funds, deeds and many other items, using settlement as the central depositing point. If the instructions from all parties to the transaction are clearly drafted, fully detailed and mutually consistent, the settlement agent can take many actions on their behalf without further consultation. This saves time and facilitates the closing of the transaction.
The settlement process was developed to help facilitate the sale or purchase of your home. The settlement agent accomplishes this by:
- Acting as the impartial “stake-holder,” or depository of documents and funds
- Processing and coordinating the flow of documents and funds
- Keeping all parties informed of progress on the escrow
- Responding to the lender’s requirements
- Securing a title insurance policy
- Obtaining approvals of reports and documents from the parties as required
- Prorating and adjusting insurance, taxes, rents, etc.
- Recording the deed and loan documents
- Maintaining security and accountability of monies owed and owing.
Who May Handle Escrow Settlements?
The settlement agent must be a disinterested third party and each state has different requirements for licensing. In some areas of the country, only a licensed attorney may act as the settlement agent.
There are two important reasons for selecting an established company: 1) The processing and closing of real estate transactions require a tremendous amount of technical experience and knowledge; 2) The settlement agent is responsible for safe-guarding and properly distributing funds and documents required to successfully complete the transaction.
Settlement agents with established firms, such as the Michael R. Kadoch P.A , generally are experienced and trained in real estate procedures, title insurance, taxes, deeds and title insurance.
A settlement agent must remain completely impartial throughout the entire escrow settlement process. He or she will normally adopt a courteous but rather formal manner when dealing with parties to the escrow, keeping conversation to the matters at hand in the escrow. This formal behavior is meant for the benefit of all concerned, since the settlement agent must follow the instructions of both parties without bias.
INSTRUCTIONS TO THE SETTLEMENT AGENT
Settlement Agents work from specific instructions provided by buyer and seller. Throughout the country the settlement process differs, but the role of the settlement agent remains the same. Depending on local custom, the escrow settlement agent may work from the purchase and sale agreement and any loan escrow instructions provided and/or separate escrow instructions prepared at the direction of the principals to the transaction.
Instructions are written documents, signed by the parties giving them, which direct the settlement agent in the specific particulars of the transaction. The settlement agent follows those to insure the proper steps are completed so the escrow can be closed.
Typical instructions include:
- The method by which the settlement agent is to receive and hold the purchase price to be paid by the buyer.
- The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing.
- The instruction and authorization to the settlement agent to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow.
- Instructions as to the proration of taxes, rents or association dues, as applicable.
- Instructions on the payment of prior liens and charges against the property and distribution of the net sale proceeds.
- Since the settlement agent can only follow the instructions as stated, and may not exceed them, it is extremely important that the instructions be stated clearly and be complete in all details.
What Each Party Does In Escrow
- Deposits the executed deed to the buyer with the settlement agent.
- Deposits evidence of pest inspection and any required repair work, if applicable.
- Deposits other required documents such as tax receipts, addresses of mortgage holders, any state or federal required documentation, etc.
- Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the settlement agent.
- Deposits funds sufficient for home and title insurance.
- Arranges for any borrowed funds to be delivered to the settlement agent.
- Deposits any deed of trust or mortgages necessary to secure loans.
- Approves any inspection reports, the Preliminary Report for title insurance, etc., called for by the purchase and sale agreements.
- Fulfills any other conditions specified in the instructions.
The Lender (if applicable):
- Prepares loan document package for buyer/borrower.
- Deposits proceeds of the loan with the settlement agent.
- Directs the settlement agent on the conditions under which the loan funds may be used.
The Settlement Agent:
- Opens the order for title insurance.
- Obtains approvals from the buyer on the Preliminary Report/ Title Commitment, pest and other inspections.
- Receives funds from the buyer and/or any lender.
- Prorates taxes, rents, etc.
- Disburses funds for title insurance, recording fees, real estate commissions, lien clearance, etc.
- Prepares an estimated statement or HUD settlement statement, as required, for each party, indicating amounts to be disbursed for services and any further amounts necessary to close.
- Records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller, closing the escrow.
- Issues final closing statement/HUD settlement statement and forwards to buyer, seller and lender.
If you have questions about the escrow process, please call our office .
Closing the Sale Transaction and Division of Charges
Once all the terms and conditions of the instructions of both parties have been fulfilled, and all closing conditions satisfied, the escrow is closed and the safe and accurate transfer of property and money has been accomplished.
Division of Charges
The method of dividing the charges for the services performed through the settlement process or as a result of escrow varies from place to place. The fees and service charges to be divided might include, for example, the title insurance policy premium, escrow settlement fee, any transfer taxes, recordation fees and cost in connection with any loan being obtained. Unless there is some special agreement between the buyer and seller as to how these charges are to be paid, local custom will generally be followed in drafting the instructions to the settlement agent as to how they are to be divided.
The escrow settlement agent will allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a pro-rata share of real property taxes or homeowner’s association dues are charged to the buyer and credited to the seller if they are prepaid at time of closing. The amounts prepaid are calculated per day from the date of closing to the date that they are paid to as follows:
Semi-annual Property Taxes in the amount of $665.05 are prepaid by the Seller to July 1st. Date of closing is June 15. There is 15 days’ worth of taxes due to be reimbursed to the seller at $3.69 per day for a total credit to the seller and charge to the buyer of $55.35.
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