What is typically included in the term "closing costs"?

Closing costs typically encompass a variety of fees associated with the finalization of a real estate transaction. These costs arise from the various services rendered to complete the sale, ensuring that both legal and financial aspects are adequately addressed.

Key components often included in closing costs are loan origination fees, appraisal costs, title insurance, inspection fees, and other necessary services that help facilitate the transfer of property ownership. This makes option C the most accurate choice, as it captures the essence of what constitutes closing costs in a real estate transaction.

The other options do not align with the typical definition of closing costs. Annual property taxes and homeowner fees are ongoing expenses rather than one-time closing costs. Marketing expenses are related to selling the property and are usually incurred by the seller prior to closing, not at the time of closing. Lastly, while real estate commissions are significant, they represent only a portion of the total closing costs, not all that is included. Thus, option C comprehensively reflects the nature of closing costs in real estate transactions.