Contracts (alternative)
A Maryland contract provides for a $5,000 home inspection contingency repair credit in lieu of repairs. At closing, this amount appears as:
AA debit to the seller and credit to the buyer✓ Correct
BA credit to the seller and debit to the buyer
CA debit to both parties
DIt is not reflected on the closing statement
Explanation
A seller-paid credit to the buyer is a debit to the seller (reducing their net proceeds) and a credit to the buyer (reducing their cash needed at closing).
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