Contracts
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?
AThey have no effect on the seller's net
BThey reduce the seller's net proceeds by the amount of the concession✓ Correct
CThey increase the seller's net proceeds
DThey affect only the buyer's closing costs, not the seller
Explanation
Seller concessions are funds the seller agrees to pay toward the buyer's closing costs. They reduce the seller's net proceeds by the concession amount, effectively lowering the seller's bottom-line return from the sale.
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