Which of the following best describes 'seller concessions' in a real estate transaction?
Why The seller paying a portion of the buyer's closing costs as part of the negotiated sale Is Correct
Answer B: The seller paying a portion of the buyer's closing costs as part of the negotiated sale
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Alabama Questions
- A seller accepts an offer of $310,000 on their home. The seller's existing mortgage balance is $195,000. Closing costs are $8,000, and the real estate commission is 6%. How much does the seller net from the sale?Real Estate Math
- A buyer's closing costs that are paid 'in advance' at closing include:Finance
- Which of the following BEST describes 'private mortgage insurance' (PMI)?Finance
- Which of the following BEST describes an 'assumable mortgage'?Finance
- Which of the following best describes negative amortization?Finance
Key Terms to Know
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Life EstateA freehold interest in real property that lasts only for the duration of a specified person's life.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →