An Alaska seller agrees to carry back a second mortgage to help the buyer qualify for financing. This is described on the closing statement as:
Why A purchase money second mortgage — a credit to the buyer and a debit to the seller Is Correct
Answer B: A purchase money second mortgage — a credit to the buyer and a debit to the seller
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
People Also Study
Related Alaska Questions
- A seller in Alaska carries back a purchase money mortgage. This means:Finance
- In a typical Alaska closing, which of the following is a SELLER debit on the settlement statement?Escrow & Title
- In an Alaska closing, the buyer's earnest money deposit is shown on the settlement statement as:Escrow & Title
- An Alaska property sold for $350,000. The seller's remaining mortgage balance was $185,000, commission was 6%, and other closing costs were $2,500. What are the seller's net proceeds?Real Estate Math
- An Alaska buyer pays $450,000 for a property on which the seller has a $300,000 mortgage. At closing, the seller's net proceeds (ignoring other costs) are:Escrow & Title
- An Alaska income property has an annual NOI of $66,000 and sells at a 7.5% cap rate. The buyer finances 75% of the purchase price at a 6.5% mortgage constant. What is the annual debt service?Real Estate Math
- An Alaska property has a purchase price of $550,000. The buyer puts 20% down and obtains a 30-year fixed mortgage at 6.75%. The loan-to-value ratio at origination is:Finance
- An Alaska property sells for $615,000. The seller's outstanding mortgage is $320,000. Commission is 5.5% and other closing costs are $4,800. The seller's net proceeds are:Real Estate Math
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees 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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →