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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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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