Escrow & Title
Which of the following is typically a buyer's closing cost in Louisiana?
AReal estate commission
BLoan origination fees and title insurance for the lender's policy✓ Correct
CTransfer taxes (typically seller's responsibility)
DOutstanding mortgage payoff
Explanation
Typical buyer closing costs in Louisiana include loan origination fees, lender's title insurance, prepaid interest, escrow setup, recording fees for their mortgage, and other lender-required charges.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Math Concepts
State-Specific Concepts
Transfer TaxRecording Requirements
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