Delaware Real Estate Practice Exam Prep – Practice Test & Study Guide

The statement that the contract price includes the sale price plus all interest from seller financing is not true in the context of a purchase agreement. In a seller financing scenario, the contract price is typically defined as the agreed-upon sale price of the property.

Seller financing arrangements allow the seller to act as the lender, providing the buyer with financing for part of the purchase. While the agreement will outline the terms of payment and possibly an amortization schedule, the contract price itself does not include the additional costs or interests involved in the financing unless explicitly stated. The payment structure and interest components are typically managed separately within the terms of the financing agreement rather than being lumped into the contract price for the purchase.

Other relevant statements regarding the purchase agreement correctly reflect necessary components of the document, such as the inclusion of a payment schedule and the requirement for all parties to sign the amortization schedule. Monthly payments shown in an amortization schedule are also standard, indicating the breakdown of principal and interest over time.