Escrow & TitleIntermediateAlaska Exam

In an Alaska closing, the buyer's earnest money deposit is shown on the settlement statement as:

AA buyer debit and seller credit
BA buyer creditCorrect
CA seller debit
DNeutral — not shown on the settlement statement

Why A buyer credit Is Correct

Answer B: A buyer credit

The earnest money the buyer has already deposited is shown as a buyer credit on the settlement statement because it reduces the amount the buyer needs to bring to closing. It is already held in escrow and is applied toward the buyer's down payment and closing costs.

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.

Key Escrow & Title Terms in This Question

People Also Study

State-Specific Concepts

Escrow Disputes

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 →