Finance
What is 'seller concessions' in a Delaware real estate transaction?
AThe seller's agreement to reduce the purchase price
BContributions by the seller toward the buyer's closing costs or loan costs, often requested as part of the purchase contract✓ Correct
CThe seller's concession of a property defect
DA discount offered by the seller to a cash buyer
Explanation
Seller concessions are contributions made by the seller toward the buyer's closing costs or prepaid items (taxes, insurance). They are often negotiated into the purchase contract and may affect the net proceeds to the seller.
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Key Terms to Know
Closing Costs
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.
Math Concepts
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