Sell My House House Buying 2

Question 1

What does 'contingent' mean when a home listing shows that status?

Accepted Answer

An offer has been accepted but conditions must be met

Answer

Contingent means the seller accepted an offer, but the sale depends on conditions like financing or inspection being satisfied.

Question 2

Which document outlines all the costs a buyer will pay at closing?

Accepted Answer

Closing Disclosure

Answer

The Closing Disclosure, provided at least three business days before closing, itemizes all final loan terms and closing costs.

Question 3

What is the primary purpose of a home warranty when buying a house?

Accepted Answer

To cover repair or replacement of major systems after closing

Answer

A home warranty covers the cost of repairing or replacing major systems and appliances that break down after purchase.

Question 4

When a buyer waives the inspection contingency to make an offer more competitive, what risk do they accept?

Accepted Answer

Buying the home without knowing its true condition

Answer

Waiving inspection means the buyer agrees to purchase regardless of hidden defects that an inspector might have found.

Question 5

What is 'earnest money' in a real estate transaction?

Accepted Answer

A good-faith deposit that shows the buyer is serious

Answer

Earnest money is a deposit made by the buyer to demonstrate serious intent; it is applied toward the purchase price at closing.

Sell My House Practice Test