What type of items go into the seller's credit column and the buyer's debit column?

In a real estate transaction, understanding how seller credits and buyer debits are categorized is crucial for accurately completing the settlement statement. Seller credits typically include any amounts the seller is entitled to receive, such as the sale price of the property or any escrow amounts that are being credited. On the other hand, the buyer's debit column would include items for which the buyer is responsible for paying, such as closing costs, down payments, and any prorated property taxes or homeowner association dues.

Prorations refer to expenses that need to be divided between the seller and the buyer based on the period of ownership. Items such as property taxes, rent, or utility fees that are due but not yet paid will often be prorated. For example, if property taxes are due for the year and the seller is responsible for them up until the closing date, the portion of those taxes that the seller owes is recorded as a debit to the seller, while the remaining amount owed after closing would be a credit to the buyer.

Thus, prorations appropriately belong in the seller's credit column and the buyer's debit column, as they reflect the shared financial responsibilities resulting from the transaction timing.