Contracts

In New York, 'closing costs' typically borne by the buyer in a residential transaction include which of the following?

AThe real estate broker's commission
BMortgage recording tax, lender's title insurance, attorney fees, and prepaid interest✓ Correct
CState transfer tax
DSeller's outstanding property tax proration (paid by seller)

Explanation

In a typical New York residential purchase, the buyer bears: mortgage recording tax (on their new mortgage), lender's title insurance premium, owner's title insurance premium, attorney fees, prepaid interest (per diem), escrow reserves, and bank fees. The seller typically bears: state transfer tax, NYC transfer tax (if applicable), and the broker's commission.

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