Which of the following is NOT considered a closing cost?

Closing costs are fees and expenses that buyers and sellers incur during the transfer of property ownership. These costs are listed on the closing disclosure that outlines the various charges involved in the closing process.

Brokerage commissions are typically considered closing costs because they are fees paid to real estate agents for their services in facilitating the sale. Legal fees are also included because they cover the cost of legal services necessary for the transaction, such as title searches and contract reviews. Inspection fees are part of closing costs as well because they involve the costs for services that assess the condition of the property before the sale is finalized.

Utility bills after property transfer, however, are generally the responsibility of the new owner and are ongoing costs associated with owning the property, not costs incurred directly at the time of closing. Therefore, they do not fall under the category of closing costs, which are specific fees paid during the transfer of ownership itself. This distinction is what makes the utility bills after property transfer the correct choice as the expense not considered a closing cost.