Certified Relocation Professional (CRP) Practice Exam

What is typically included in miscellaneous selling costs during a home sale?

1. Loss on sale expenses

2. Capital improvements

3. Assessments

4. Title insurance

The correct answer is: Title insurance

In the context of selling a home, miscellaneous selling costs refer to various expenses that may arise during the process. Title insurance is indeed a typical component of these miscellaneous selling costs. When a home is sold, title insurance protects the buyer and lender against any potential disputes over property ownership or claims that could arise. This type of insurance can cover legal fees or losses incurred if there's an issue with the title. Other costs that may fall under miscellaneous selling costs can include real estate commissions, closing costs, and other fees that are incurred specifically as part of the sale process, but title insurance is particularly significant because it is a common requirement by lenders and provides essential protection for the transaction. The inclusion of title insurance in miscellaneous selling costs is essential for understanding the overall financial obligations one might encounter during a home sale.