What term refers to the amount due from or owed by an individual at the closing of a transaction?

What term refers to the amount due from or owed by an individual at the closing of a transaction?

• A. Credits
• B. Payments
• C. Debits
• D. Fees

Answer: (C)

The correct term for the amount due from or owed by an individual at the closing of a transaction is "debits." In the context of a real estate transaction, debits represent amounts that the buyer or seller must pay, which could include things like loan closing costs, unpaid property taxes, or any other fees that need to be settled at closing. Understanding the concept of debits is crucial in real estate transactions, as it affects the final figure a party must pay out or receive. This term reflects the obligations that are the result of incurred costs throughout the transaction, ensuring that all financial responsibilities are accounted for at the closing.

The correct term for the amount due from or owed by an individual at the closing of a transaction is "debits." In the context of a real estate transaction, debits represent amounts that the buyer or seller must pay, which could include things like loan closing costs, unpaid property taxes, or any other fees that need to be settled at closing.

Understanding the concept of debits is crucial in real estate transactions, as it affects the final figure a party must pay out or receive. This term reflects the obligations that are the result of incurred costs throughout the transaction, ensuring that all financial responsibilities are accounted for at the closing.