Question

Barry and Nicole gave their attorney a $13,000 check for the down payment on their new home when they signed the contract of sale. At closing, the down payment was considered a

Answer 1

The $13,000 down payment given to the attorney at closing is considered a contractual obligation for the purchase of the new home.

Step-by-step explanation:

At closing, the down payment of $13,000 was considered a contractual obligation.

In the context of buying a home, a down payment is a portion of the purchase price that the buyers pay upfront when signing the contract of sale. It is usually a percentage of the total purchase price, and it signifies the buyers' commitment to proceed with the purchase.

Once the closing takes place, the down payment is considered part of the overall transaction and is no longer separately earmarked.