Question

Which of the following would not be included in closing costs?

A) Points
B) Earnest money
C) Title charges
D) Recording fees

Answer 1

Earnest money would not be included in closing costs.

Step-by-step explanation:

Closing costs are the expenses incurred during the purchase of a property, apart from the actual purchase price. In this case, earnest money would not be included in closing costs. Earnest money is a deposit made by the buyer to demonstrate their intention to purchase the property. It is typically held in escrow until the closing of the sale, but it is not considered a closing cost.