Which of the following closing costs is NOT included in the basis for the purchase of real property?

In the context of purchasing real property, the basis for the property includes all capital expenditures that are necessary to acquire the property and prepare it for its intended use. Closing costs play a crucial role in determining this basis.

The cost of obtaining a credit report is akin to an expense related to securing financing, rather than a cost directly associated with the acquisition of the property itself. Typically, this fee is one that the buyer incurs to evaluate creditworthiness, and it does not directly contribute to the physical acquisition or improvement of the property.

On the other hand, title insurance, legal fees, and recording fees are all expenses that are directly associated with the transfer of the property title and are essential components of the transaction. Title insurance protects against any claims against the property, legal fees are incurred for the services necessary to execute the transaction, and recording fees are required to register the property deed with the local government authorities. Each of these helps establish clear ownership and ensures that all legal formalities are adhered to, thereby being included in the purchase basis.