Questions about filling out the REBNY Financial Statement

[Benny]

Hi there,

Darlene and I are getting the REBNY Financial Statement ready and have a couple questions:

- My parents are providing the down payment, so this amount of money won't be reflected in the REBNY Financial Statement. Is that ok? If they need to transfer it to my account first, I suppose we could do that, but not sure if there's a more direct way to do it.

- My employer is paying for my life insurance, with a standard amount of $400,000. I am not supposed to write that in the REBNY Financial Statement, am I? Those aren't really assets available to me, so it would seem strange to have that added to the assets.

- I'm assuming the amount for wages/salary should be written as the annual amount, yes?

Should I send your partner broker a copy of the REBNY Financial Statement to look over?

Thanks very much!

Ben

[aslan]

Hi Ben, these are great questions. These are pretty straightforward so I'm happy to answer them for you, though of course you should be consulting directly with your buyer's agent.

• Parent gift should be listed for sure as an asset. There's a line item called “Other Assets” where this should be listed in.
• Yes you can list life insurance in the assets section, both the total value and the surrender value. You can give more detail about it on page 2
• Income should be listed as monthly as that's what the standard REBNY Financial Statement asks for

Remember that Excel (vs PDF) is best as that’s easy to edit. Good luck!

[Benny]

Hi Aslan, thank you for replying!

We sent our REBNY Financial Statement over to Hauseit's partner buyer's broker. We are a little confused with the contract deposit. Our agent mentioned it is about 10% of the purchase price. So is this money that we are supposed to have on top of the down payment and the post-purchase liquidity of 2 years of monthly payments? Why wouldn't the contract deposit go toward the down payment?

Ben

[aslan]

Hi Ben! The contract deposit is part of the down payment, and will be applied towards the down payment. It’s just submitted upfront with the signed contract, almost as if it’s held hostage.

So in terms of the REBNY Financial Statement, yes it’s okay to list it out separately (10% of the contract price).

However, since it sounds like you don’t even have an accepted offer yet, or a signed contract, it’s okay to leave it blank, and just have your assets listed elsewhere.

Good luck and remember to consult your buyer's broker directly :-)