On the closing date, Henry is charged for the day of closing. Which statement is true regarding charges for the day of closing?

On the closing date, Henry is charged for the day of closing. Which statement is true regarding charges for the day of closing?

• A. Henry will be charged for the day of closing.
• B. The seller will be charged for the day of closing.
• C. There is no charge for the day of closing.
• D. The closing date will be extended.

Answer: (A)

On closing, ownership transfers to the buyer, so daily costs that accrue from that day forward are the buyer’s responsibility. Henry will be charged for the day of closing because he becomes the new owner and must assume those per-day charges starting that date (such as interest, taxes, or HOA dues, as applicable). The seller typically gets credited for items prepaid by them or for days before closing, not charged for the closing day itself. Extending the closing date isn’t related to who pays the day’s charges. So the statement that Henry is charged for the day of closing is the accurate one.

On closing, ownership transfers to the buyer, so daily costs that accrue from that day forward are the buyer’s responsibility. Henry will be charged for the day of closing because he becomes the new owner and must assume those per-day charges starting that date (such as interest, taxes, or HOA dues, as applicable). The seller typically gets credited for items prepaid by them or for days before closing, not charged for the closing day itself. Extending the closing date isn’t related to who pays the day’s charges. So the statement that Henry is charged for the day of closing is the accurate one.