Question

Some expenses paid at closing must be __________ between the buyer and the seller. The most common items that fall into this category include taxes, insurance, and utilities.

a) shared equally
b) negotiated separately
c) fully covered by the buyer
d) solely the responsibility of the seller

Answer 1

The expenses paid at closing must be shared equally between the buyer and the seller.

Step-by-step explanation:

The expenses paid at closing must be shared equally between the buyer and the seller.

When buying a property, certain expenses such as taxes, insurance, and utilities need to be divided between the buyer and the seller in a fair manner. The concept of sharing the closing costs equally ensures that both parties contribute their fair share of these expenses. This is the most common approach followed in real estate transactions.

For example, if the total closing costs amount to $10,000, the buyer and the seller would each be responsible for paying $5,000.