What do "closing costs" refer to?

Closing costs are fees that are associated with the transfer of property ownership from the seller to the buyer at the conclusion of a real estate transaction. These costs encompass a variety of expenses that can include appraisal fees, title searches, loan origination fees, attorney fees, recording fees, and any applicable taxes. It is essential for both buyers and sellers to understand these costs, as they can significantly impact the overall financial responsibility when closing a deal.

The other options do not accurately capture the essence of closing costs. While property maintenance refers to ongoing expenses for keeping the property in good condition, it is not related to the transaction process. Taxes incurred from property sales may include capital gains tax or transfer taxes, but they do not encompass the full range of costs paid at closing. Finally, the price negotiated for the property refers to the agreed-upon sale price rather than the additional costs incurred during the transfer process.