Escrow & Title
On a closing statement, a 'debit' to the seller means:
AMoney the seller receives
BMoney the seller owes or pays at closing✓ Correct
CA credit given to the buyer
DAn adjustment in the buyer's favor
Explanation
A debit on a closing statement represents money that must be paid or an amount that reduces the party's proceeds. A seller debit reduces the seller's net proceeds from the sale.
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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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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.
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