Ontario Mortgage Agent Practice Exam 2025 - Free Mortgage Agent Practice Questions and Study Guide

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What do closing costs refer to in real estate transactions?

Payments made to secure a property

Fees beyond the purchase price of a property

Closing costs in real estate transactions encompass various fees and expenses that are incurred in addition to the purchase price of the property. These costs can include things like legal fees, title insurance, appraisal fees, and real estate transaction taxes, among others. They are essential for completing the transfer of property ownership and are typically due at the closing of the sale.

The nature of closing costs is such that they must be calculated and understood by both buyers and sellers as part of the overall financial planning for the transaction. This makes it crucial for prospective buyers to budget for these additional expenses rather than relying solely on the listed price of the home. While securing a property, interest on a mortgage, and monthly utility payments are indeed important financial components of home ownership, they do not fall under the category of closing costs.

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Interest paid on the mortgage

Monthly utilities charged to the homeowner

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