Humber/Ontario Real Estate Course 3 Exam Practice

What is often included in the buyer's closing costs?

1. a certificate of eligibility

2. adjustment for property taxes

3. escrow account setup fee

4. fees associated with title registration documents

5. mortgage interest payments

6. property advertising fee

The correct answer is: fees associated with title registration documents

Fees associated with title registration documents are typically included in the buyer's closing costs. These fees cover the cost of registering the transfer of ownership and ensuring that the title of the property is clear and valid. This process is essential to protect the buyer's investment in the property. Option A, a certificate of eligibility, is typically related to obtaining a loan, such as a VA loan, and is not typically part of the buyer's closing costs for a real estate transaction. Option B, adjustment for property taxes, may be a part of the closing costs but is not typically an upfront cost. It is often prorated between the buyer and the seller based on the closing date. Option C, an escrow account setup fee, is a fee that may be charged by the lender but is not necessarily a standard inclusion in the buyer's closing costs. Option E, mortgage interest payments, would not be part of the closing costs as they are ongoing payments that the buyer makes after purchasing the property. Option F, a property advertising fee, is not a typical buyer closing cost but rather a seller expense related to marketing the property for sale.