Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

When a buyer assumes an existing loan, it typically leads to an increase in the seller's debits on the closing statement. This is because the seller remains liable for the original loan until it is fully paid off, even if the buyer is now responsible for making the payments. For the seller, this assumption can result in debits that reflect costs associated with the loan, such as any remaining amounts owed, interest adjustments, or other fees that may come into play during the assumption process.

In contrast, the other options do not accurately reflect the financial implications for the seller. For example, reducing seller's credits would imply that there is a decrease in the funds the seller receives, but assuming the loan does not directly reduce the sale price. Claims of no effect do not recognize the operational and financial responsibilities that remain with the seller once the buyer assumes the loan. Lastly, an increase in seller's credits doesn't apply here since the loan assumption does not generate extra income for the seller but instead adds liabilities. Thus, the primary effect of the buyer assuming the loan is an increase in the seller's debits.