Massachusetts Real Estate License Practice Test

Which of the following is NOT typically included in buyer closing statements?

1. Title examination fees

2. Deposit refund

3. Insurance premiums

4. Survey costs

The correct answer is: Deposit refund

In a buyer's closing statement, a deposit refund is typically not included because it represents a return of funds that the buyer initially provided as earnest money to show serious intent to purchase the property. Once the transaction closes, any deposit is generally applied toward the buyer's costs or down payment, rather than being itemized as a separate cost in the closing statement. On the other hand, title examination fees, insurance premiums, and survey costs are all legitimate expenses associated with the closing process. These costs are essential to securing the property and ensuring that the buyer is protected from any legal issues related to property ownership. Title examination fees confirm the seller’s legal ownership and that there are no outstanding claims against the property. Insurance premiums are necessary for protecting the property against potential risks, while survey costs help to determine property boundaries and confirm that the property's physical characteristics match legal descriptions. Each of these expenses is a crucial part of the transaction and typically appears in the buyer’s closing statement.