What is typically included in closing costs?

Closing costs generally encompass a wide range of fees and charges associated with finalizing a real estate transaction. This includes costs like inspections, which are conducted to ensure the property is in good condition, title insurance that protects against potential defects in ownership, and various other fees that may arise during the process, such as appraisal fees, attorney fees, and recording fees. These costs can be incurred by both the buyer and the seller, and they vary depending on the specifics of the transaction and local regulations. This comprehensive view of closing costs underscores their importance in real estate transactions, making option B the most accurate representation of what is typically included.

The other options narrow the focus too much or exclude significant components of closing costs, which reinforces why they are not the correct answers.