Alabama Real Estate Practice Exam 2026 – All-in-One Guide to Master Your Real Estate License!

Closing costs are the various fees and charges associated with a real estate transaction. These fees typically include costs for services provided by lenders, appraisers, title insurance companies, and government agencies. Options A and B, cost of moving and renovation expenses respectively, are not typically included in closing costs as they are separate expenses. Option D, application fees for the mortgage, may be included in the closing costs, but it is not the main component. The main elements of closing costs are credits, debits, and prorations related to the transaction, such as property taxes, recording fees, and loan origination fees.