Who bears the cost for the preparation of legal documents at closing according to real estate laws?

The correct answer indicates that the licensee bears the costs for the preparation of legal documents at closing, with the exception of those costs incurred for documents prepared specifically by the buyer’s or seller’s attorney. This delineation reflects the typical practice in real estate transactions, where the licensee often facilitates the closing process and is responsible for standard documents such as the settlement statement and other necessary legal forms related to the transaction. However, any legal documents that require specific legal expertise or that need to be tailored to the individual circumstances of the buyer or seller are typically prepared by their respective attorneys. In such cases, the costs associated with these documents would be borne by the party engaging legal services.

This approach helps to clarify the financial responsibilities during the closing process, ensuring that each party is accountable for the costs of their legal representation while allowing the licensee to manage the overarching transaction efficiently.