What must the completion statement show when the buyer has a mortgage?

What must the completion statement show when the buyer has a mortgage?

• A. Purchase price, disbursements and fees, less any monies already paid
• B. Only the purchase price
• C. The mortgage amount only
• D. The completion date

Answer: (A)

The key idea is that a completion statement acts as a full cash reconciliation for the closing of the sale, especially when a mortgage is involved. It must lay out all the sums the buyer is liable to pay and then show what has already been paid toward those sums, so the net amount required at completion is clear. Specifically, it should include the purchase price and any related costs such as disbursements and fees, and then deduct any monies already paid (for example, the deposit). This gives the net figure the buyer needs to settle, with the mortgage funds typically used to cover those amounts. Showing only the mortgage amount would omit the price and costs, and focusing solely on the completion date does not reflect the financial settlement. So the statement that combines purchase price, disbursements and fees, less any monies already paid, best captures what must be shown.

The key idea is that a completion statement acts as a full cash reconciliation for the closing of the sale, especially when a mortgage is involved. It must lay out all the sums the buyer is liable to pay and then show what has already been paid toward those sums, so the net amount required at completion is clear.

Specifically, it should include the purchase price and any related costs such as disbursements and fees, and then deduct any monies already paid (for example, the deposit). This gives the net figure the buyer needs to settle, with the mortgage funds typically used to cover those amounts. Showing only the mortgage amount would omit the price and costs, and focusing solely on the completion date does not reflect the financial settlement. So the statement that combines purchase price, disbursements and fees, less any monies already paid, best captures what must be shown.