Which closing cost is typically paid by the seller?

Which closing cost is typically paid by the seller?

• A. Loan costs
• B. Title fees
• C. Appraisal fees
• D. Recording fees

Answer: (B)

Title fees are typically paid by the seller because they cover the work needed to ensure the buyer will receive a clear and marketable title. This includes the title search and usually the owner’s title insurance, both of which protect the buyer and make the transfer smooth. Loan costs and appraisal fees are tied to the buyer’s financing, so they’re generally paid by the buyer. Recording fees can vary by agreement, but the title-related costs paid by the seller are the most common seller-paid closing items.

Title fees are typically paid by the seller because they cover the work needed to ensure the buyer will receive a clear and marketable title. This includes the title search and usually the owner’s title insurance, both of which protect the buyer and make the transfer smooth. Loan costs and appraisal fees are tied to the buyer’s financing, so they’re generally paid by the buyer. Recording fees can vary by agreement, but the title-related costs paid by the seller are the most common seller-paid closing items.