Finance
In South Dakota, 'seller concessions' in a real estate transaction are:
APrice reductions given by the seller to the buyer based on inspection findings
BContributions by the seller toward the buyer's closing costs, which lenders limit to a percentage of the loan amount✓ Correct
CVerbal agreements that do not affect the formal transaction
DSeller's agreement to leave personal property with the home
Explanation
Seller concessions (seller-paid closing costs) are contributions by the seller toward the buyer's closing costs. Lenders limit seller concessions as a percentage of the purchase price or appraised value (e.g., FHA: 6%, conventional: 3-9% depending on LTV, VA: 4%) to prevent artificial inflation of purchase prices.
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