Which of the following best describes "closing costs" in a real estate transaction?

"Closing costs" in a real estate transaction encompass a variety of fees and expenses that are incurred in the final steps of buying or selling a property. This definition captures the totality of charges that both buyers and sellers must consider beyond just the purchase price of the property.

These costs can include, but are not limited to, title insurance, appraisal fees, attorney fees, loan origination fees, and recording fees, among others. They are essential because they facilitate the completion of the transaction, ensuring that all legal and administrative requirements are met before ownership is transferred. Understanding closing costs is crucial for both parties as these fees can significantly affect the overall expenses associated with the transaction.

In contrast, the other options provide a limited view. For instance, focusing only on the mortgage payment, the cost of inspections, or the down payment misses the broader range of expenses that encompass closing costs. Each of these components plays a specific role in the transaction but does not fully encompass the comprehensive set of fees involved in closing a real estate deal.