Which term refers to an amount entered in favor of a party on a closing statement?

The term that refers to an amount entered in favor of a party on a closing statement is "Credit." In the context of real estate transactions, a closing statement details the financial aspects of the sale and includes both credits and debits. A credit represents a sum that the buyer or seller is entitled to receive, effectively reducing their financial obligation during the transaction.

For instance, if a seller is providing a credit to help cover closing costs or if there are amounts reimbursed for repairs or other concessions, these would all be reflected as credits on the closing statement. The role of credits is crucial because they can impact the total amount a party has to pay or receive, helping facilitate a fair distribution of costs associated with the transaction.