In an Arizona transaction, 'seller concessions' on the Closing Disclosure appear as a credit to the buyer. What effect do they have on the seller's net proceeds?
Why They reduce the seller's net proceeds by the amount of the concession Is Correct
Answer B: They reduce the seller's net proceeds by the amount of the concession
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
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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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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