Which closing cost is NOT included in both possession and title closings?

The correct answer is the conveyance tax, which is not included in both possession and title closings because it is typically associated with the transfer of ownership and is paid by the seller at the time of closing. The conveyance tax is a government tax levied on the transfer of real property, and its payment generally occurs only during the specific closing process of the title transfer rather than during the possession phase.

In contrast, the escrow fee, title search, and preparation of documents are costs commonly shared in both types of closings. The escrow fee is paid for the service of an escrow agent who facilitates the closing process. The title search is essential for verifying the ownership of the property and uncovering any liens or encumbrances against it, serving a vital role in both possession and title closings. Additionally, the preparation of documents is necessary to facilitate the legal transfer of ownership and is relevant during both closing phases. Therefore, the conveyance tax stands apart as it is specifically tied to the legal transfer of property ownership, occurring in the context of title closings only.