Aceable Level 8 Practice Exam

Closing costs are typically divided between seller and buyer based on who benefits from each service and who handles arranging the transaction. In most residential deals, the seller covers the real estate commissions, the title-related costs tied to clearing and transferring ownership, and transfer taxes. The buyer covers costs connected to financing and recording: loan origination or points, the title insurance for the lender, the appraisal, and the recording fees to put the deed and mortgage on public records. This split reflects common practice and why those specific costs appear on each side. The other options don’t match how these items are usually allocated, such as one party paying all costs, costs being split evenly regardless of item, or costs being borne by the lender.