What is the term for the money the buyer or seller receives at closing?

The term for the money the buyer or seller receives at closing is referred to as "credit." In real estate transactions, credits represent amounts that are factored into the closing statement, essentially reducing the amount the buyer needs to bring or reflecting amounts due to the seller. These amounts can encompass various elements, such as loan credits, earnest money deposits applied towards the purchase price, or seller concessions that help cover closing costs.

Understanding this concept is crucial for both buyers and sellers during a transaction, as it directly affects the financial outcomes and can include various adjustments based on negotiated terms of the sale. The clarity of credits on a closing statement ensures that all parties understand the monetary exchanges taking place during the finalization of the sale.

While deposit, rebate, and refund pertain to specific types of financial transactions or adjustments, they do not encapsulate the overall process of financial exchanges occurring specifically at closing as accurately as the term "credit" does. A deposit typically refers to a sum of money given to secure a potential deal, a rebate is usually a return of a portion of a payment, and a refund implies a return of money previously paid. None of these terms adequately represent the comprehensive nature of the financial adjustments made at closing.