What does 'closing costs' refer to in a residential real estate transaction?

Question: What does 'closing costs' refer to in a residential real estate transaction?

Answer options: ✅ Expenses, other than the purchase price, that buyers and sellers incur at the time of closing.

• The commission paid to the real estate professionals involved in the sale.
• The cost of property repairs identified during the home inspection.
• The amount of the mortgage loan obtained by the buyer.

Correct answer: Expenses, other than the purchase price, that buyers and sellers incur at the time of closing.

Explanation: Closing costs encompass various fees and expenses (e.g., legal fees, property transfer tax) separate from the property's purchase price.