What does a credit to the seller and a debit to the broker represent after subtotaling the seller's columns on a settlement sheet?

What does a credit to the seller and a debit to the broker represent after subtotaling the seller's columns on a settlement sheet?

• A. Payment made by the buyer
• B. A commission fee for the broker
• C. Money owed by the seller
• D. Funds remaining in escrow

Answer: (C)

A credit to the seller and a debit to the broker on a settlement sheet signifies the financial transactions relevant to the sale that have occurred during the closing process. When subtotaling the seller's columns, a credit indicates an amount that increases the seller's net proceeds from the sale, while a debit reflects amounts that the seller owes or expenses that must be paid. In this scenario, the credit to the seller means that this is an advantage to them, typically representing something like the sale price or any payments recaptured. Conversely, the debit to the broker usually reflects the commission fee owed for services rendered through the sale process. Since these two figures are presented in conjunction, it indicates that money is still owed by the seller after accounting for the credit (the cash inflow) and the debit (the broker's commission). Therefore, that combination reflects that there is still an obligation on the seller's part, showcasing that there are funds due to the broker after the transaction is executed. This directly represents money owed by the seller in the context of their financial settlement at the time of closing.

A credit to the seller and a debit to the broker on a settlement sheet signifies the financial transactions relevant to the sale that have occurred during the closing process. When subtotaling the seller's columns, a credit indicates an amount that increases the seller's net proceeds from the sale, while a debit reflects amounts that the seller owes or expenses that must be paid.

In this scenario, the credit to the seller means that this is an advantage to them, typically representing something like the sale price or any payments recaptured. Conversely, the debit to the broker usually reflects the commission fee owed for services rendered through the sale process. Since these two figures are presented in conjunction, it indicates that money is still owed by the seller after accounting for the credit (the cash inflow) and the debit (the broker's commission).

Therefore, that combination reflects that there is still an obligation on the seller's part, showcasing that there are funds due to the broker after the transaction is executed. This directly represents money owed by the seller in the context of their financial settlement at the time of closing.