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 statement
A closing statement is the itemized accounting of all funds in a real estate transaction, showing each party's debits and credits, prorations, fees, and the cash due from the buyer or to the seller. For most residential mortgage loans, the federal Closing Disclosure serves this purpose; other transactions may use a settlement statement. The buyer and seller each review their side before closing.
- Exam tip
- Debits are amounts a party owes or pays; credits are amounts a party receives. The purchase price is a debit to the buyer and a credit to the seller.
- Example
- A closing statement shows the seller credited $400,000 for the price, debited $24,000 for commission and a $210,000 loan payoff, and netting $166,000.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23