Which of the following is NOT typically included in closing costs?

The purchase price of the property is not typically included in closing costs because it represents the amount of money the buyer agrees to pay to the seller for the real estate transaction itself. Closing costs are the additional fees and expenses associated with the purchase of a property that are incurred during the closing process, separate from the actual price of the property.

In contrast, title insurance premiums, escrow fees, and lender’s processing fees are common components of closing costs. Title insurance protects against any title issues that may arise after the sale, escrow fees cover the costs of managing the transaction and ensuring that all documentation and funds are handled properly, and lender’s processing fees are charges from the lender for processing the mortgage loan. These items reflect the transactional and administrative expenses necessary to finalize the sale, distinguishing them from the core purchase price.