What does POC mean in real estate transactions?

In real estate transactions, POC stands for "Paid Outside of Closing." This term is crucial because it refers to certain costs that are paid by the buyer or seller directly, outside of the formal closing process. These payments are not included in the settlement statement and typically relate to items such as inspection fees, appraisal fees, or even certain repair costs agreed upon in the contract. By understanding this term, mortgage loan officers and real estate professionals can better navigate the financial aspects of transactions, ensuring that all parties are aware of their financial obligations and the overall closing costs involved. Knowing about POC helps to clarify the distinction between what is involved in the closing itself and what has already been settled prior to that event.