Sell My House Real Estate Contracts and Closing

Question 1

What is earnest money in a real estate transaction?

Accepted Answer

A good-faith deposit the buyer makes when submitting an offer

Answer

The down payment made at closing

Answer

The fee paid to the buyer's real estate agent

Answer

A refundable inspection fee

Question 2

What is a contingency in a real estate purchase contract?

Accepted Answer

A condition that must be met for the sale to proceed

Answer

A penalty clause for late closing

Answer

The seller's right to accept a backup offer

Answer

A clause setting the final sale price

Question 3

What does 'closing costs' refer to in a home sale?

Accepted Answer

Fees and expenses paid at settlement to complete the transaction

Answer

The final listing price negotiation

Answer

The cost of moving out of the home

Answer

The seller's agent commission only

Question 4

What is a seller's disclosure statement?

Accepted Answer

A legally required document where sellers reveal known defects or issues with the property

Answer

A document listing the home's asking price history

Answer

The seller's proof of mortgage payoff

Answer

A marketing document prepared by the listing agent

Question 5

What happens to earnest money if a buyer backs out of a deal without a valid contingency?

Accepted Answer

The seller typically keeps the earnest money as liquidated damages

Answer

It is automatically refunded to the buyer

Answer

It is split equally between buyer and seller

Answer

It is held in escrow indefinitely

Question 6

What is a title search and why is it required in a home sale?

Accepted Answer

An examination of public records to verify the seller legally owns the property and there are no liens

Answer

A marketing analysis of comparable home titles

Answer

A background check on the buyer

Answer

An appraisal of the property's fair market value