Contracts
A Florida seller agrees to pay the buyer's closing costs up to $5,000 as a seller concession. This concession appears on the Closing Disclosure as:
AA credit to the seller
BA debit to the seller and a credit to the buyer✓ Correct
CA debit to the buyer
DIt does not appear since it is not a cash transaction
Explanation
Seller concessions appear on the Closing Disclosure as a debit to the seller (they are paying out money) and a credit to the buyer (they are receiving value). This reduces the seller's net proceeds and reduces the buyer's cash needed at closing. Lenders limit seller concessions based on loan type and LTV to prevent artificial inflation of property values.
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