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:

Cost Efficiency

The ability to achieve the desired outcome or production level at the lowest possible cost.

Marketing Channel Power

The degree of influence one entity has over the activities and strategies within a marketing channel, including distribution and communications.

Integrated Supply Chains

Refers to a closely connected and synchronized chain of suppliers, manufacturers, and retailers who work together seamlessly to reduce costs, improve efficiency, and deliver products to consumers.

Sales Promotion Role

The activities or strategies aimed at boosting sales and strengthening market presence temporarily through incentives such as discounts, contests, or free samples.