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Paragraph 12 addresses settlement and other expenses, often referred to as closing costs. If a buyer requests the seller to cover closing costs, the dollar amount must be specified here, rather than a percentage of the loan or sale price. This paragraph is also relevant even if no closing costs were initially requested. For example, if a seller prefers to provide a repair credit of $2,000 instead of completing repairs, this can be noted as closing costs through an amendment to paragraph 12. As a broker, it's advised for agents to use a specific dollar amount for repairs rather than detailed descriptions.
