1. On a closing statement, the purchase price is a:
Answer & explanation
Answer: B. The seller receives the price (credit); the buyer owes it (debit).
closing
closing
Closing, also called settlement, is the final step of a real estate transaction, when the buyer pays the purchase price, the seller delivers the deed, loan documents are signed, and funds are disbursed. It may take place at a title company, attorney's office, or through escrow, depending on local custom. After closing, the deed and mortgage are recorded in the public records.
- Exam tip
- Exams use closing and settlement interchangeably. Know that RESPA and TRID govern disclosures for most residential loan closings.
- Example
- On closing day, the buyer wires $60,000, signs the loan papers, receives the keys, and the title company records the new deed that afternoon.
Related terms & state variants
Sources
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Last verified: 2026-10-23