Free Pennsylvania Real Estate Practice Exam Practice Question
On a closing statement, the amount of cash a buyer needs to close a real estate transaction is BEST defined as the:
Correct Answer: B
Rationale: The amount of cash a buyer needs to close a real estate transaction is accurately represented by the buyer's total credits subtracted from the buyer's total debits (charges). This calculation reflects the net amount the buyer must pay, considering all costs and credits associated with the transaction.
Option A incorrectly mixes the seller's credits with the buyer's debits, which does not pertain to the buyer's cash requirement. Option C refers to seller's equity, which is unrelated to the buyer's cash needs. Option D complicates the calculation by introducing seller expenses and financing costs, which are not directly relevant to determining the buyer's cash requirement at closing.
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