At the Closing, the Buyer Will Be Credited for a Number

question 4

Multiple Choice

At the closing, the buyer will be credited for a number of costs that have been paid up-front (or will be paid after closing) as well as a number of prorated expenses that account for the period of time during which the seller occupied the house. All of the following items detailed in the closing costs involve credits that are commonly passed on to the buyer EXCEPT:

• A) Earnest money
• B) Hazard insurance premiums
• C) Property taxes
• D) Mortgage interest

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Definitions:

Defective Condition

A flaw in a product that makes it unsafe for its intended or reasonably foreseeable use.

Abnormally Risky

Refers to activities or operations that inherently involve a higher than normal risk of causing harm to others or the environment, typically requiring special insurance or safety measures.

Negligence Per Se

A doctrine in tort law in which an act is considered negligent because it violates a statute or regulation.

Joy Riding

The act of taking and driving another person's vehicle without the owner's consent, typically for leisure or thrill, without the intention to permanently deprive the owner of the vehicle.