Question

Broker Bill Butter is working with Buyer Brian Bread and has found a property on which the Buyer wants to place an offer. The property that he likes is owned by Seller Sammy Samuel and listed by Broker Cherry Cleary. The property is located at 2443 E Westgate Ave in Durango, CO. The asking price is $315,000. Buyer Bread offers $299,000 on April 10th and wants all appliances including the washer and dryer included in the sale price, the appliances were excluded in the listing as was the hot tub on the patio. The offer is countered by Seller Samuel on the recommendation of his agent Broker Cherry Cleary on April 11th at $309,000 and will include all appliances except the washer and dryer. Buyer Bread accepts this counter offer on April 12th and the closing is scheduled for May 25. An inspection is held on April 16th and Buyer Bread wants some roof shingles repaired and the carpet in the master bedroom replaced. Seller Samuel agrees to the shingles being repaired, but will only give a $750 credit at closing to Buyer Bread to replace the carpet; Buyer Bread accepts. Prior to closing, Buyer Bread requests that the seller allow them to start a kitchen remodel before closing. Seller Samuel will not allow this and Buyer Bread gets angry and wants out of the contract. How would the credit for $750 for carpet replacement be shown on the settlement statement?
(a)-As a $750 debit to the broker and a $750 credit to the buyer.
(b)-As a $750 debit to the seller and a $750 credit to the buyer
(c)-As a $750 debit to the seller and a $750 credit to the broker
(d)-As a $750 debit to the buyer and a $750 credit to the seller

Answer 1

Answer:

The answer for this question is B.