Disable ads (and more) with a membership for a one time $4.99 payment
What are closing costs associated with?
Opening a new bank account
The process of closing a business
Credits, debits, and prorations in a real estate transaction
Filing yearly taxes
The correct answer is: Credits, debits, and prorations in a real estate transaction
Closing costs refer to the fees and expenses that are associated with the completion of a real estate transaction. These costs can include title search fees, appraisal fees, transfer taxes, and attorney fees, among others. Option A, opening a new bank account, is incorrect because closing costs are not relevant to that process. Option B, closing a business, is also incorrect because that refers to the dissolution of a business, not a real estate transaction. Option D, filing yearly taxes, is unrelated to real estate transactions and therefore not the correct answer.