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Real estate glossaryNational exam concept

Seller net proceeds

Seller net proceeds are the amount a seller receives after subtracting payoff amounts, brokerage compensation, taxes, closing costs, debits, and other seller obligations from the gross sale proceeds, then adding any seller credits.

Exam area: Real Estate Calculations

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What does “seller net proceeds” mean in real estate?

Seller net proceeds are the amount a seller receives after subtracting payoff amounts, brokerage compensation, taxes, closing costs, debits, and other seller obligations from the gross sale proceeds, then adding any seller credits.

How is “seller net proceeds” different from the closest wrong answer?

Sale price is the gross starting amount. Net proceeds are what remains after the complete seller closing statement is applied.

What is the Georgia-specific rule?

Georgia problems may include transfer tax based on consideration and attorney-closing charges. Use the allocations stated in the problem rather than assuming local custom.

Worked exam example

Scenario

A $400,000 sale has a $250,000 loan payoff, $24,000 commission, $4,000 other seller costs, and no credits. Seller net is $122,000.

What is the most common exam trap?

Trap correction

Do not subtract the buyer's new loan or down payment from the seller's price.

Original exam check

Apply the definition

A Georgia home sells for $360,000. The seller's loan payoff is $210,000, the commission is 6 percent, other seller costs are $3,400, and the seller pays the state transfer tax on the full price. There are no seller credits. What is the seller's net?

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Related terms to learn next

Buyer funds needed at closing

Buyer funds needed at closing are the buyer's purchase-price obligation plus buyer closing costs and debits, minus loan proceeds, deposits already paid, seller credits, and other credits shown in the problem.

Transfer tax

Georgia real estate transfer tax is an excise tax on a taxable conveyance of real property.

Proration

Proration is the allocation of a periodic income or expense between buyer and seller according to the portion of the period each party owns or occupies the property and the closing convention stated in the problem.

Equity

Equity is the owner's financial interest in property, calculated in a basic exam problem as current property value minus debts and liens against it.

Recommended next complete lesson

Continue with Real Estate Calculations complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
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