Arizona Real Estate License Practice Exam

Question: 1 / 1505

How is the amount of money the buyer has to bring to closing represented on a closing statement?

Debit seller, credit buyer

Credit seller, debit buyer

Debit buyer only

Credit buyer only

The amount of money the buyer is required to bring to closing is represented as a debit to the buyer on the closing statement. This signifies that the buyer is responsible for that amount as part of the closing costs, including the purchase price, taxes, and any other fees applicable.

When examining the closing statement, the transaction will reflect the buyer's debits—this is money that the buyer must bring to the table to finalize the purchase. Each debit indicates a financial obligation that the buyer has, which ultimately gets summed up to represent the total cash needed for closing.

The other options do not correctly describe the way the buyer’s contribution is recorded. A credit entry for the buyer would imply that the buyer is receiving funds or a reduction in their payment obligation, which is not the case when they are required to bring money to close the deal. Thus, the correct interpretation centers around the buyer being debited for the total they need to provide at closing.

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