How should the purchase price be handled on the settlement statement?

The correct approach to handling the purchase price on the settlement statement is to charge the buyer and credit the seller. This reflects the nature of the transaction where the buyer pays the agreed-upon purchase price to the seller for the property.

When the buyer is charged, it represents the amount they owe at closing. The credit to the seller indicates that they are receiving that amount in the sale. This is a fundamental principle in real estate transactions, ensuring that the financial flows are accurately represented in the settlement statement.

The other options do not align with established practices in real estate transactions. Charging the seller while crediting the buyer would misrepresent the financial obligations and rights of the parties involved. Charging both parties equally would be illogical in a purchase scenario, where one party is selling and the other is buying. Lastly, charging the broker and crediting the seller does not accurately depict the buyer's obligation to pay for the property, which is the essential component of the transaction.