An amount for a seller’s contribution to the buyers’ closing costs should be in Paragraph 12A(1)(b) of the contract. If the buyers were using a government loan program for the purchase, this contribution would first cover expenses related to the program, but this does not apply in this situation. Instead, the seller’s contribution would first cover the buyers’ prepaid items and then the buyers’ other expenses up to the amount listed for the seller’s contribution. These expenses are defined in Paragraph 12A(2).
Source: TAR
