In a transaction using a designated listing broker, which statement is most accurate?

In a transaction using a designated listing broker, which statement is most accurate?

• A. The seller's closing statement is prepared by the designated listing broker
• B. The buyer's closing statement is prepared by the lender
• C. The title company prepares both statements
• D. The buyer prepares the seller's closing statement

Answer: (A)

In a designated listing broker arrangement, the listing broker represents the seller and handles the seller’s side of the closing process, including the preparation of the seller’s settlement documents. The seller’s closing statement shows all credits and debits to the seller, prorations, and the net proceeds, and it’s typically prepared by the party representing the seller—here, the designated listing broker. The lender doesn’t prepare closing statements, and while the title company or escrow agent often coordinates or prepares closing statements, the emphasis in this scenario is that the seller’s statement is prepared by the listing broker, which makes that choice the most accurate. The buyer’s closing statement isn’t prepared by the lender, and the buyer doesn’t prepare the seller’s closing statement.

In a designated listing broker arrangement, the listing broker represents the seller and handles the seller’s side of the closing process, including the preparation of the seller’s settlement documents. The seller’s closing statement shows all credits and debits to the seller, prorations, and the net proceeds, and it’s typically prepared by the party representing the seller—here, the designated listing broker. The lender doesn’t prepare closing statements, and while the title company or escrow agent often coordinates or prepares closing statements, the emphasis in this scenario is that the seller’s statement is prepared by the listing broker, which makes that choice the most accurate. The buyer’s closing statement isn’t prepared by the lender, and the buyer doesn’t prepare the seller’s closing statement.