GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Closing Costs


Synonyms:acquisition fee, final costs, takeover fee
Filed Under: financial-banking, insurance, legal-contracts, mortgages, real-estate
Tags: banking, contract, insurance, legal, mortgage, realty
 

Definition of closing costs

closing costs
1. The various costs or expenses associated with closing a real estate transaction. Such costs can include paying for title insurance or appraisal fees. It is important to remember that these costs are over and above the purchase price of the property.

Related Terms and Acronyms:

  • application fee   What the lender charges to process the document in which a prospective borrower details his or her financial situation to qualify for a loan.
  • appraisal fee   What someone charges to deliver a professional opinion about how much a property is worth.
  • assumption fee   A lender's charge for updating records when a buyer takes responsibility for a mortgage from the seller.
  • closing   In real estate, the delivery of a deed, the payment of the purchase price, the signing of notes, and the paying of closing costs, which completes a real estate transaction.
  • early closing cost reimbursement   Some line-of-credit lenders waive underwriting costs when a line is opened in anticipation of future profits. If a line is then closed early, these institutions impose those fees retroactively.
  • legal fees and disbursements   Charges paid on your behalf by a solicitor that are in addition to professional costs.
  • non-recurring closing costs (NRCC)   One-time fees paid at a real-estate settlement, including origination, appraisal, points, title insurance and credit report.
      ➥  Non-recurring fees at closing are those that are paid once such as a property inspection or property appraisal fees. Recurring fees are those that are paid again and again such as property taxes, condo fees and property insurance.
  • pre-paid expenses   also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.
  • transfer of title (TOT)   A document signed by the seller and purchaser transferring ownership, at which time the document is registered against the property.
  • up-front costs   The costs that must be paid at the time of signing a car lease agreement. These can include the first month's payment, a refundable security deposit, a capitalized cost reduction or down payment, taxes, registration and other fees.

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