KB ARTICLE 1Recorded Price vs Seller Payoff (Using Real Numbers)

KB ARTICLE 1Recorded Price vs Seller Payoff (Using Real Numbers)

Recorded Price vs Seller Payoff (Using Real Numbers)

Deal Snapshot (Luxury / Casino Asset)

  • Fair Market Value (FMV): $10,000,000

  • Offer (85% of FMV): $8,500,000

  • Recorded Price (45% of FMV): $4,500,000

  • Lender Position (24% of FMV): $2,400,000

What this means

  • The seller is owed $8.5M total

  • Only $4.5M flows through escrow

  • The difference is ROLLED, not missing

The math (3rd-grader)

  • Seller Payoff: $8,500,000

  • Paid via escrow: $4,500,000

  • Rolled Seller Balance: $4,000,000

Recorded price controls escrow mechanics
Seller payoff controls economics