When a Buyer Signs an Offer to Purchase a Property

question 24

Multiple Choice

When a buyer signs an offer to purchase a property, the broker receives a monetary amount from the purchaser of 5 or 10 percent of the purchase price. This deposit is commonly referred to as the:

• A) commission
• B) earnest money
• C) closing cost
• D) title insurance premium

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Definitions:

Independent Directors

Independent directors are members of a board of directors who do not have a material or pecuniary relationship with the company or its related entities, ensuring unbiased oversight.

Common Stock

A type of equity ownership in a corporation, giving holders voting rights and a share of profits in the form of dividends.

Ownership Share

The portion of a company or asset owned by an individual or entity, typically represented by stock in the company.

Corporation

A legal entity recognized by law, formed to conduct business and capable of suing or being sued.