Definitions for "Soft costs"
Costs paid to professionals for services to improve a premises.
Expenses paid for intangible items such as appraisals, credit report, land survey, market/feasibility study, business plan, closing fee, etc.
Costs, other than acquisition and construction/rehabilitation, which are incurred while holding unimproved property or during construction. Soft costs may include, but are not limited to, such items as carrying charges (interest, real estate taxes, and ground rents), professional service and audit fees, offering plan/prospectus costs, surveys, relocation expenses, insurance, assessment, mortgage insurance premiums, inspection, recording and filing fee, not-for-profit developer's allowance, FNMA/GHMA fee, mortgage recording tax, and title examination costs.