Title: Determine the buyer’s cost of purchase.
Course: Real Estate (12154) > Section: Describing Brokerage and Agency Contract Responsibilities

Determination of the buyer’s cost of purchase should be calculated using a standard buyer's purchase contract.

Determination should also take into account other fees (up front and at closing) the buyer may incur (determined by mortgage lender’s good faith estimate (GFE); home inspection).

DPOR correlations: 18VAC135-20-400. 14 (Real estate financing); 18VAC135-20-400. 15 (Brokerage and agency contract responsibilities)

Process/Skill Questions:

- What costs are included in the purchase contract?
- What are contingencies?
- Why are contingencies included in contracts?
- What money does a buyer have to bring to closing, and how is that calculated?
- What methods of payment are acceptable for buyers to pay closing costs?