A Florida purchase contract specifies a purchase price of $425,000 with a 20% down payment. The buyer has paid $5,000 in earnest money. How much additional money must the buyer bring to closing for the down payment?
Correct Answer
B) $80,000
Correct: B - Down payment = $425,000 × 0.20 = $85,000. Additional needed = $85,000 - $5,000 = $80,000. Why not A: This undercalculates the required down payment. Why not C: This is the total down payment, not the additional amount. Why not D: This overcalculates the requirement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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A Florida purchase contract includes a home inspection contingency allowing 10 days for inspection. The buyer discovers significant defects on day 8 and wants to cancel. What must the buyer do?
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A seller accepts a buyer's offer on their Florida home but dies before closing. The seller's estate representative wants to cancel the contract. What is the legal status?