Definition of Closing Costs

Closing Costs are the expenses associated with finalizing a real estate transaction. These costs can include fees for services such as title searches, appraisals, and inspections, as well as taxes, legal fees, and loan-related charges. Buyers and sellers typically have different sets of closing costs, which can vary depending on the location, the type of property, and the terms of the sale. It’s important to factor in these costs when budgeting for a real estate transaction.

Related terms include: title search, appraisal, inspection, property taxes, attorney fees, loan origination fees.

References:

• Consumer Financial Protection Bureau. (n.d.). What are closing costs? https://www.consumerfinance.gov/owning-a-home/process/closing-costs/
• Investopedia. (2021). Closing Costs. https://www.investopedia.com/terms/c/closingcosts.asp