Real Estate Practice : Lesson 2801
By David Saks, Broker / Industry Analyst
#2801 A real estate transaction is scheduled to close in the month of May on the 12th. The seller paid the annual premium for his hazard insurance about six months ago. The buyer decided not to take over the policy. When the settlement statement is presented part of the hazard insurance premium will be listed as a debit to the seller. Is this fact true or false ? Take your time. The solution is posted below the wildlife photo. A. False If the seller paid the hazard insurance in advance it'll show up as a credit on the seller's side of the settlement statement. The buyer decided not to take over the policy so the buyer won't get billed for it, or debited, at settlement.