Which of the following is NOT a method of payment typically made in real estate transactions?

Study for the ASU REA380 Exam 2. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for success!

In real estate transactions, traditional forms of payment commonly include cash payments, financing through mortgages, and payments made via secure escrow accounts. Each of these methods ensures security and clarity in the financial aspects of a property exchange.

Cash payment in U.S. dollars is the most straightforward and often preferred method due to its immediacy and lack of dependence on external financing. Financing through a mortgage is another prevalent method, allowing buyers to purchase properties without paying the full amount upfront, instead making payments over time based on loan agreements. Likewise, the use of secure escrow accounts adds a layer of protection in transactions, ensuring that funds are only released when all conditions are satisfactorily met, thereby protecting both parties.

In contrast, bartering goods and services, while a potential form of exchange in some contexts, is not typical in real estate transactions. Real estate deals usually require clear-cut monetary values attributed to properties, making the standardization of currency payments vital for legal accountability, property valuation, and tax liabilities. Therefore, the method of bartering does not align with the standard practices typical for such financial exchanges in the real estate market.

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