Escrow & Title
Which of the following is typically a seller's closing cost in a North Carolina transaction?
ALoan origination fees
BReal estate commission✓ Correct
CPrepaid homeowner's insurance
DInitial escrow deposits
Explanation
The real estate commission is traditionally a seller's expense paid at closing. Loan origination fees, prepaid insurance, and escrow deposits are typically buyer/borrower costs.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Math Concepts
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