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).

Related Maryland Contracts (alternative) Questions

Practice More Maryland Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Maryland Quiz →