Humber/Ontario Real Estate Course 3 Exam Practice

Which one of the following is included as a professional service cost under closing fees?

1. Advertising expenses

2. Assessment tax payments

3. Inspection fees

4. Legal documentation charges

5. Mortgage rate analysis fees

6. Utility bill payments

The correct answer is: Legal documentation charges

Legal documentation charges are considered a professional service cost under closing fees because they are essential for the legal transfer of property ownership. These charges typically cover the preparation and filing of necessary legal documents required to complete a real estate transaction, such as deeds and other title documents. This cost is integral to ensuring that the transfer is legally binding and that ownership can be clearly established. Other choices like advertising expenses and utility bill payments are related to different aspects of property management or marketing and do not pertain directly to closing costs associated with the legal transfer of ownership. Similarly, assessment tax payments and mortgage rate analysis fees are not encompassed within the scope of typical closing fees that relate to the legal services involved in the transaction. Inspection fees, while they are a necessary step in the buying process, typically occur before the closing and are not classified as professional service costs in the closing fee context.