What term refers to a single monetary amount that is entered on the closing disclosure as a debit to the seller and a credit to the buyer?

The term that describes a single monetary amount recorded on the closing disclosure as a debit to the seller and a credit to the buyer is known as a double entry. In real estate transactions, the closing disclosure serves as a detailed accounting of the financial aspects involved in the property transfer.

A double entry occurs because the financial impact of a transaction affects both parties involved: the seller incurs a debit (an amount deducted from their proceeds), and the buyer receives a corresponding credit (an amount added to their side of the transaction). This dual accounting approach ensures accuracy and transparency in the financial exchange, reflecting the transfer of funds in a balanced manner.

This ensures that the financial statement reflects all aspects of the transaction correctly, aligning the interests of both the buyer and seller, which is crucial for clear communication and record-keeping in real estate deals.