Seller Brokerage has listed a Single-Family home in South Gate with Mr. Seller. The Property was placed on the Market and received an offer. The offer was submitted on behalf of Mrs. Buyer by Buyer Brokerage and Mr. Seller accepted the terms. Although the documents presented do not display electronic signatures, assume these documents were fully executed via electronic signatures. Escrow has been opened on this transaction which is currently in process. The Escrow Officer has received the RPA-CA and is asking you to translate the information into the Escrow Memo Spreadsheet so Escrow and Commission Instructions can be generated. The key documents for the Offer and Memo are presented for your review.

Additional information not on the RPA-CA you will need for the Memo sheet:

1. Seller does not have a mortgage lien on the property at this time. The house is "free and clear" as the mortgage has been paid off years ago. Therefore, there is no Seller proration for Mortgage Interest.

 2. Hint: Buyer's Loan information is on the RPA-CA section 3D.

 3. The Listing with the Seller was agreed in writing on the Residential Listing Agreement that the    Listing Broker would get 3% commission and the Selling (Buyer) Broker would get 2% commission. (FYI, The MLS listing advertised that the Cooperating Broker would get 2% commission) This makes the total commission charged to the Seller at 5%.

 4. The Property Tax annual amount due by the Seller is $1,076.34. The Seller has already paid the first half of the annual Tax bill which covers from July 1, 2018 thru December 31, 2018. The second half payment of $538.17 has not been paid by the Seller and covers the time period from January 1, 2019 thru June 30, 2019. ( You will need to calculate the day of Escrow closing, and from that day, count how many calendar days the Seller will have owned the property since Jan 1st. The number of days must be multiplied by the daily prorated amount) (Hint. Daily Proration dollar amount of property taxes are calculated based on a 30-day month per California Escrow Practice so 6 months equals 180 days). (Extra hint, you are calculating both the Daily Proration dollar amount and the number of calendar days Seller would be responsible for the prorated second half Tax payment)

 5. The Seller will handle the cancelation of their Fire Insurance policy outside of Escrow.

 6. The Lender will later on in the Escrow timeline provide information via a document called the Lending Estimate- LE (used to be called the Good Faith Estimate) regarding Buyer's closing costs, so they are not available yet at this time, meaning you do not have to estimate for this exercise any Buyer Prorations on this form.

 7. The Documentary Transfer Tax is equal to $1.10 for every $1,000 of the purchase price.

 8. The Cost for an NHD report typically varies between $90-$120 based on which Vendor provides the report. For this Escrow, the chosen Vendor charges $94.95.

 

Answer rating: 100% (QA)

The Escrow Memo Spreadsheet should include the following information 1 Seller Information The Sellers name address and contact information 2 Buyer Information The Buyers name address and contact information 3 Property Information The property address purchase price and legal description of the property 4 Payment Instructions The payment instructions for the Escrow Officer to disburse funds including the amounts to be paid to the Seller Buyer and Brokers 5 Prorations The prorations for taxes insurance and other costs associated with the purchase or sale of the Property In this particular case there is no Seller proration for Mortgage Interest since the Seller does not have a mortgage lien on the property The total commission charged to the Seller is 5 and should be included in the Payment Instructions section The Property Tax proration should include the annual amount due by the Seller 107634 and the number of days the Seller will have owned the property since January 1st multiplied by the daily prorated amount calculated based on a 30day month The Seller ... View the full answer