What is closing and what are closing costs?
‘Closing’ is the legal transfer of ownership of a property from seller to buyer. It is done through a formal across-the-table meeting between the buyer, seller, settlement agent, and the buyer and seller’s agents. It is also known as ‘settlement’. ‘Closing costs’ are the costs of transferring ownership of the property from the seller to the buyer. It does not include the purchase price. Closing costs usually conist of fees for obtaining loan, appraisal of the property, survey, real estate agent’s commission, taxes, and so on. It normally amounts to 2% to 4% of the purchase price.
