Which of the following is not a common closing cost?

Which of the following is not a common closing cost?

• A. Asset Management Fees
• B. Title Insurance
• C. Recording Fees
• D. Legal Fees

Answer: (A)

Closing costs are the fees paid to complete the real estate transaction at the time of closing. Common items include title insurance, which protects against title defects; recording fees, charged by the county to record the deed and mortgage; and legal fees, for attorney work in preparing closing documents. Asset management fees, on the other hand, are ongoing charges for managing the property after closing and are typically paid from operating cash flow or as part of ongoing expenses rather than at the closing. Therefore, asset management fees are not a common closing cost.

Closing costs are the fees paid to complete the real estate transaction at the time of closing. Common items include title insurance, which protects against title defects; recording fees, charged by the county to record the deed and mortgage; and legal fees, for attorney work in preparing closing documents. Asset management fees, on the other hand, are ongoing charges for managing the property after closing and are typically paid from operating cash flow or as part of ongoing expenses rather than at the closing. Therefore, asset management fees are not a common closing cost.