1972, November, Pg. 23. cle in colorado.inc.

2 Colo.Law. 23

Colorado Lawyer

1972.

1972, November, Pg. 23.

cle in colorado.inc

23Vol. 2, No. 1, Pg. 23

cle in colorado.inc.The following article was originally presented as part of CLE's seminar on real estate sales, given in Boulder on September 9, 1972. The author, Norman E. Larkins, is assistant manager and counsel for Transamerica Title Insurance Company, Boulder County.

Real Estate Closings: Preparation of Settlement Statements

While no two real estate sales are ever quite the same, a closing conference virtually always occurs in accord with the contract for sale. Various parties and interests are represented at this conference, and include any combination of the following: seller, purchaser, lender, real estate agents, closing agents (usually from title company), and attorneys.

The ConferenceThe closing conference is conducted for the purpose of closing the transaction and the term "closing" customarily implies the following:

1. Adjustment of the purchase price by proration of various items specified in and controlled by the contract for sale, thereby ascertaining a net purchase price.

2. Payment by the purchaser (in cash or certified funds) of the net purchase price plus expenses and fees chargeable to the purchaser less credits for either of the following: (a) earnest money deposit paid by the purchaser to the seller or to the real estate agent; and (b) the proceeds of any new loan extended to the purchaser.

3. Collection of those funds which constitute the credits listed above.

4. Disbursement of those items indicated for payment on the settlement statement. Such items usually included the following:(a) balance due seller---i.e., net purchase price less expenses and fees chargeable to the seller; and (b) expenses and fees chargeable to both the seller and the purchaser.

5. Conveyance of the title to the property by delivery of a warranty deed to the purchaser, and the consequent transfer to him of the right of possession to the premises.

   The Settlement StatementComputation of the figures necessary for the accomplishment of items 1 through 5 above must, of course, always be done in accord with the provisions of the contract for sale. Once computed, these figures should be transposed onto some form of settlement statement. Separate seller's and purchaser's settlement statements are most prevalently used...