Massachusetts Real Estate License Practice Test

Which aspect is NOT typically included in a seller’s closing costs?

1. Broker commission

2. Buyer's financing fees

3. Unpaid taxes/charges

4. Legal fees

The correct answer is: Buyer's financing fees

The reasoning behind identifying buyer's financing fees as not typically included in a seller's closing costs centers around the nature of the transaction and the parties involved. Closing costs generally encompass expenses that the seller must pay during the finalization of the sale of their property. These can include the broker commission, which is a fee to the agent for services rendered, any unpaid taxes or charges associated with the property, and legal fees that may arise from the transaction. Buyer's financing fees, on the other hand, are expenses that the buyer incurs when securing funding for the purchase of the property. These costs may involve loan origination fees, points, and various lender-related expenses. They are separate from the seller's obligations, making them irrelevant to the seller's closing costs.