32. A seller sold a property for $375000 with the closing on July 1st in a jurisdiction where the buyer pays for the day of closing. The seller had a mortgage balance at the time of closing of $301000 and had recently paid invoices of $400 for the second quarter's water and electricity $1200 for new appliances and roofing repairs of $700. Based only on these items how much will the seller receive at closing?
Answer: A
The seller will receive $71,700 at closing.
To determine how much the seller receives at closing, we need to calculate the net proceeds from the sale after deducting the mortgage balance and other expenses. The total expenses and the mortgage balance amount to $303,900, which when subtracted from the sale price of $375,000 results in $71,700.
A) $71,700
This option is correct as it accurately reflects the calculation of the seller's net proceeds. The total amount received from the sale is $375,000, and after subtracting the mortgage balance of $301,000 and the additional expenses totaling $2,900 ($400 for water and electricity, $1,200 for appliances, and $700 for roofing repairs), the seller's net proceeds are indeed $71,700.
B) $72,400
This option is incorrect because it does not account for the full amount of the seller's expenses. If $72,400 were the net proceeds, it would imply that expenses were lower or the sale price was higher by $700, which is not supported by the provided figures.
C) $73,600
This option is also incorrect, as it suggests an even higher net gain than the correct calculation allows. The difference of $1,900 from the correct amount indicates that either expenses were underestimated or the mortgage balance was inaccurately accounted for, which is not the case here.
D) $74,000
This option is incorrect as it indicates a net amount that exceeds the actual proceeds. This would suggest an unrealistic scenario where either the sale price or the mortgage balance was adjusted, which contradicts the given amounts.
Conclusion
The correct option, $71,700, accurately represents the seller's net proceeds after deducting the mortgage balance and associated expenses. All other options fail to reflect either the total costs or the correct sale price, highlighting the importance of accurate calculations in real estate transactions.