The expenses, over and above the price of the property that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges.
Also known as "settlement costs."
Closing costs are separated into two categories: nonrecurring closing costs and prepaid costs. Nonrecurring costs are one-time costs associated with buying a property or obtaining a loan. Prepaid costs are those that recur over time, such as property taxes and homeowners' insurance. These costs are estimated by the lender on what is called a "good-faith estimate", which the lender must issue to the borrower within three days of a home loan application.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
closing costs — n. Expenses that must be paid on closing, including fees for title searches and title insurance, deeds, appraisals, credit reports, and escrow. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell … Law dictionary
Closing costs — Real property in most jurisdictions is conveyed from the seller to the buyer through a real estate contract. The point in time at which the contract is actually executed and the title to the property is conveyed to the buyer is known as the… … Wikipedia
closing costs — Expenses which must be paid in addition to the purchase price on the sale of real estate. Closing costs with respect to a debt secured by an interest in land include: (a) fees or premiums for title examination, title insurance, or similar… … Black's law dictionary
closing costs — clos′ing costs n. pl. bus various charges, as for title search paid by the buyer or seller of real property when the sale is executed … From formal English to slang
closing costs — / kləυzɪŋ kɒsts/ plural noun US the costs involved in finalising a deal, especially a mortgage or other bank loan … Dictionary of banking and finance
closing costs — Real Estate. 1. fees charged to a purchaser by a bank, lawyer, etc. for services related to a sale, as title search, appraisal, etc. 2. any expenses over the purchase price of a house, land, etc., that is paid by the purchaser or seller at the… … Universalium
closing costs — All the expenses involved in transferring ownership of real estate. Bloomberg Financial Dictionary … Financial and business terms
closing costs — The variety of ancillary expenses involved in purchasing real estate … American business jargon
closing costs — noun plural : expenses (as for appraisal, title search, and title insurance) connected with the purchase of real estate that usually constitute a charge against the purchaser additional to the cost of the property purchased * * * Real Estate. 1.… … Useful english dictionary
nonrecurring closing costs — Those costs of closing a home purchase that need to be paid only once such as the appraisal fee, title insurance, and transfer taxes. (Compare with recurring closing costs) Category: Real Estate & Rental Property Nolo’s Plain English Law… … Law dictionary