24. A buyer made a 10% earnest money deposit on the sale of a $77,000 house. The listing agreement stated that the licensee's commission was to be 6% of the sale price. As authorized by the buyer and the seller, the licensee paid, for the seller, the title fee of $190 and the termite inspection fee of $125. At the closing, how much money will the seller receive from the balance of the earnest money deposit?
Answer: A
$2,765
The seller will receive $2,765 from the balance of the earnest money deposit after deducting the costs associated with the sale.
A) $2,765
This option correctly calculates the amount the seller receives after deducting the title fee and termite inspection fee from the earnest money deposit. The earnest money deposit is $7,700 (10% of $77,000). After subtracting the total fees of $315 ($190 + $125), the seller ends up with $7,700 - $315 = $2,765.
B) $3,080
This option is incorrect as it does not account for the deductions accurately. If we consider the earnest money deposit calculated correctly but fail to subtract the necessary fees, the amount of $3,080 is misleading and does not reflect the seller's actual proceeds.
C) $4,620
This option is also incorrect. While it may represent a calculation involving the earnest money deposit, it does not consider the deduction of the title fee and termite inspection fee. Therefore, it misrepresents the net amount the seller receives.
D) $4,936
This option is incorrect as well. It suggests an amount that exceeds the total earnest money deposit after deducting fees. The calculation is inaccurate since it does not align with the context of the transaction and the required deductions from the earnest money.
Conclusion
The correct answer is $2,765, as it accurately reflects the seller's net proceeds after all deductions from the earnest money deposit are taken into account. All other options fail to consider the necessary fees or miscalculate the total amount, thus leading to incorrect conclusions regarding the seller's actual receipt.