Finance
What is 'equity' in a Rhode Island real estate context?
AThe fair market value of the property
BThe difference between the property's market value and the outstanding mortgage balance✓ Correct
CThe assessed value for property tax purposes
DThe amount of cash invested at closing
Explanation
Equity is the owner's interest in the property, calculated as the property's current market value minus the total debt (mortgages and liens) secured by the property.
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