Which one of the following is true of selling costs?
A)They generally are divided equally between the seller and the buyer.
B)They include costs associated with offering a property for sale, but not those associated with transacting the sale.
C)They do not affect the amount realized in a transaction.
D)They may include both sales commissions and transfer taxes.

Question

Quizplus · Accepted Answer

Selling costs may include sales commissions and transfer taxes, among other expenses. Option A is incorrect because selling costs are not necessarily divided equally between the seller and the buyer. Option B is incorrect because selling costs may include expenses associated with both offering and transacting the sale. Option C is incorrect because selling costs do affect the amount realized in a transaction.

Which One of the Following Is True of Selling Costs