Tennessee Real Estate License Exam Practice Question
A settlement statement is used at the closing of a real estate transaction to
Correct Answer: B
Rationale: A settlement statement provides a detailed breakdown of the financial aspects of a real estate transaction, specifically highlighting the allocation of debits and credits to both the buyer and seller. This transparency ensures that all parties understand their financial responsibilities.
Option A is incorrect as the statement does not resolve disputes but summarizes agreed-upon terms. Option C misrepresents the statement's purpose; while commissions may be included, the primary focus is not on broker fees. Option D is also inaccurate; the settlement statement does not address discrepancies between offers and counteroffers, which are typically handled in earlier negotiation stages.
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