Identify the financial payments you will have to deal with on receipt of the proceeds of sale.

• A. Payment of taxes only
• B. Payment to the buyer’s agent
• C. Repayment of the seller’s mortgage, payment of the estate agent’s account, payment of the solicitor’s own account, accounting to the client for the net balance
• D. Distribution to the local council

Answer: (C)

When you receive the sale proceeds, the money goes first to discharge obligations secured on the title and then to settle the professional charges, leaving the net balance to the seller. This means redeeming the seller’s mortgage, paying the estate agent’s account, and settling your own account for fees and disbursements. After those payments are made, you account to the client for the remaining net balance due to them. This sequence ensures the lender is paid off, the agent is paid, and your fees are covered before the seller receives the remaining funds. Other options miss essential payments or describe settlements that don’t arise from the sale proceeds in this context.