Alabama Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

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Question: 1 / 400

Which of the following best defines a credit in real estate transactions?

Financial advice given by the real estate agent

An evaluation of loan worthiness

Money paid by one party to the other

In real estate transactions, a credit is defined as money paid by one party to the other. This is usually done to cover expenses or to offset the purchase price. Option A is incorrect because financial advice is not considered a credit in a real estate transaction. Option B is incorrect because an evaluation of loan worthiness is not a transaction in and of itself. Option D is incorrect because a fee for processing a loan application is not considered a credit, but rather a fee for service.

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A fee for processing the loan application

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