Which of the following is NOT a cost typically paid by the seller at closing?

In real estate transactions, closing costs can vary significantly depending on local customs and the specifics of the deal; however, typically, some costs are more commonly associated with the seller than others.

The correct answer, which indicates a cost typically not borne by the seller, is the loan origination fees. These fees are charged by lenders to cover the costs associated with processing a loan application and are primarily the responsibility of the borrower who is obtaining financing to purchase a property. Because these fees are directly related to the mortgage being secured by the buyer, they do not usually impact the seller's closing costs.

On the other hand, commissions are typically paid by the seller as part of the real estate sales process, covering the services rendered by the agent or broker. Excise taxes can also fall upon the seller depending on the jurisdiction's taxation rules regarding property transfers. Deed preparation, while sometimes negotiated, is generally another cost typically associated with the seller, as it involves the formal documentation necessary for transferring ownership.

Understanding these distinctions helps sellers prepare for the financial implications of closing and ensure they are aware of the expenses they will be responsible for when finalizing a sale.