Escrow & Title

In Texas, when closing costs are described as being 'paid outside of closing' (POC), this means:

AThe costs were paid before the closing date directly to the service provider✓ Correct
BThe costs are not reflected on the Closing Disclosure
CThe buyer is financing the costs
DThe seller has agreed to pay the costs

Explanation

Items marked as 'Paid Outside of Closing' (POC) on the Closing Disclosure are costs that were paid directly to the service provider before the closing date, such as the appraisal fee or home inspection fee. These items are disclosed on the Closing Disclosure for transparency even though they are not collected at closing.

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