Closing costs in a real estate transaction can also be referred to as what?

In a real estate transaction, closing costs are commonly referred to as settlement costs. This term encompasses various fees and expenses that buyers and sellers incur during the finalization of a property sale. Settlement costs may include things like loan origination fees, title insurance, appraisal fees, and attorney fees, among other expenses that must be settled at the time of closing.

Understanding this terminology is important for comprehending the financial aspects of buying or selling real estate, as it gives potential property owners a clearer picture of the total costs involved beyond just the purchase price of the property. This helps in budgeting and ensuring there are no surprises when the transaction is finalized. The use of "settlement costs" serves as a comprehensive label for all expenses associated with the closing process, making it a valuable term in real estate education and transactions.