Question

Buyer purchased a property from Seller on August 15, 2006. Buyer was to take possession as of September 30, 2006, with all perorations to be as of the same date. On November 1,2005 Seller had paid the taxes for the fiscal year of 2005-2006. The escrow closing statement would show

Answer 1

The question is about an escrow closing statement and the implications of the possession of a property. In this scenario, if the owner is unable to deliver possession on the agreed date, both parties have the option to cancel the agreement.

Step-by-step explanation:

The subject of this question is Business. The question is about an escrow closing statement and the implications of the possession of a property.

In this scenario, the buyer purchased a property from the seller, and the possession was supposed to take place on September 30, 2006. However, due to various reasons, if the owner is unable to deliver possession on the agreed date, both parties have the option to cancel the agreement. The escrow closing statement would then need to be adjusted accordingly.

In terms of the tax payment made by the seller for the fiscal year 2005-2006, it would likely be reflected in the escrow closing statement as a credit to the seller and a debt to the buyer, since the buyer would be responsible for paying taxes from the date of possession onwards.