Which item is credited to the buyer at closing in Illinois?

Which item is credited to the buyer at closing in Illinois?

• A. Sale price
• B. Earnest money
• C. Property taxes paid in advance
• D. Unused seller's insurance premium

Answer: (B)

At closing in Illinois, the earnest money is credited to the buyer. This is an important concept as earnest money serves as a deposit indicating the buyer's commitment to purchasing the property. It is typically held in escrow until the closing date and is applied to the buyer's closing costs or down payment. By crediting the earnest money during the closing process, it ensures that the buyer receives a financial acknowledgment of the amount they have already invested in the transaction. While the sale price represents the total amount agreed upon for the transaction, it is not credited separately at closing as it is already incorporated into the overall financial calculations. Property taxes paid in advance and unused seller's insurance premium may involve adjustments, but they aren't direct credits to the buyer. Thus, earnest money is specifically recognized as a credit back to the buyer, highlighting its role in the purchase process.

At closing in Illinois, the earnest money is credited to the buyer. This is an important concept as earnest money serves as a deposit indicating the buyer's commitment to purchasing the property. It is typically held in escrow until the closing date and is applied to the buyer's closing costs or down payment. By crediting the earnest money during the closing process, it ensures that the buyer receives a financial acknowledgment of the amount they have already invested in the transaction.

While the sale price represents the total amount agreed upon for the transaction, it is not credited separately at closing as it is already incorporated into the overall financial calculations. Property taxes paid in advance and unused seller's insurance premium may involve adjustments, but they aren't direct credits to the buyer. Thus, earnest money is specifically recognized as a credit back to the buyer, highlighting its role in the purchase process.