What is typically included in closing costs?

Closing costs encompass a variety of fees and expenses required to finalize a real estate transaction beyond the purchase price of the property. This includes the fees associated with the title search, which verifies the property's legal ownership and ensures there are no liens against it, as well as inspection costs, which assess the condition of the property and help identify any potential issues before the purchase.

These components are essential for both the buyer and the seller as they contribute to a smoother transaction process and reduce the risk of future legal or financial complications. By including title search fees and inspection costs, the correct choice accurately reflects common elements of closing costs.

The other options are limited in scope or focus solely on individual components that are typically part of the broader category of closing costs, but do not encompass the range of fees typically incurred during the closing process.