What is 'seller concessions' in a Delaware real estate transaction?
Why Contributions by the seller toward the buyer's closing costs or loan costs, often requested as part of the purchase contract Is Correct
Answer B: Contributions by the seller toward the buyer's closing costs or loan costs, often requested as part of the purchase contract
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.
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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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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