Which of the following is a common component of buyer funds at closing?

The correct response highlights that reserves for escrow or impound accounts are a typical component of buyer funds at closing. When a purchase agreement is finalized, buyers often need to establish an escrow account to cover future payments for taxes and insurance. These reserves act as a safety net, ensuring that funds are available when these recurring expenses come due.

While bank fees for account maintenance can be a factor in a buyer's financial planning, they do not typically arise specifically during the closing process. Similarly, real estate appraisal fees and legal fees for contract reviews are usually settled prior to closing or through other arrangements, rather than being part of the buyer's funds directly needed at closing. Therefore, reserves for escrow or impound accounts represent a necessary financial obligation that directly impacts the closing transaction.