Closing costs vary depending on the deal,but typically are from 1 to 8 percent of the sale price, though more typically 2-3percent
Real estate is "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings or housing."
It is a legal term used in jurisdictions such as the United States, United Kingdom, Canada, Australia, and New Zealand.
Real property in most jurisdictions is conveyed from the seller to the buyer through a real estate contract. The point in time at which the contract is actually executed and the title to the property is conveyed to the buyer is known as the "closing". It is common for a variety of costs associated with the transaction (above and beyond the price of the property itself) to be incurred by either the buyer or the seller. These costs are typically paid at the closing, and are known as closing costs.
Examples of typical closing costs might include:
Real estate transaction
Land law is the form of law that deals with the rights to use, alienate, or exclude others from land. In many jurisdictions, these kinds of property are referred to as real estate or real property, as distinct from personal property. Land use agreements, including renting, are an important intersection of property and contract law. Encumbrance on the land rights of one, such as an easement, may constitute the land rights of another. Mineral rights and water rights are closely linked, and often interrelated concepts. Land rights are such a basic form of law that they develop even where there is no state to enforce them; for example, the claim clubs of the American West were institutions that arose organically to enforce the system of rules appurtenant to mining. Squatting, the occupation of land without ownership, is a globally ubiquitous an Sovereignty, in common law jurisdictions, is often referred to as absolute title, radical title, or allodial title. Nearly all of these jurisdictions have a system of land registration, to record fee simple interests, and a land claim process to resolve disputes.
Indigenous land rights are recognized by international law, as well as the national legal systems of common law and civil law countries. In common law jurisdictions, the land rights of indigenous peoples are referred to as aboriginal title. In customary law jurisdictions, customary land is the predominant form of land ownership.
A real estate transaction is the process whereby rights in a unit of property (or designated real estate) is transferred between two or more parties, e.g. in case of conveyance one party being the seller(s) and the other being the buyer(s). It can often be quite complicated due to the complexity of the property rights being transferred, the amount of money being exchanged, and government regulations. Conventions and requirements also vary considerably among different countries of the world and among smaller legal entities (jurisdictions).
In more abstract terms, a real estate transaction, like other financial transactions, causes transaction costs. To identify and possibly reduce these transaction costs, the Organization for Economic Co-operation and Development (OECD) addressed the issue through a study commissioned by the European Commission, and through a research action.
Decorative Allowance (or Decoration Allowance) is a real estate term seen in realtors' marketing media (MLS, flyers, etc.) to inform buyers that the seller is willing to help contribute to a portion of the costs of renovation at closing or settlement. The allowance functions as an incentive for the buyer.
Typically the amount and purpose of the allowance is noted in an addendum to a standard real estate contract and would appear as a credit on the HUD-1 settlement sheet to be used by the buyer towards payment of his closing costs or down payment (if permitted by the lender).