Which of the following items is commonly charged to the seller during a closing?

The existing loan payoff is commonly charged to the seller during a closing because it is the outstanding balance that the seller owes on their mortgage. When a property is sold, part of the proceeds from the sale are typically used to pay off this loan. This ensures that the lien on the property is released, allowing the new owner to take full ownership without being encumbered by any previous debts associated with the property. It is a standard practice in real estate transactions to settle these debts at the closing, which is why the existing loan payoff is the correct answer in this context.

Other items listed may have different charging conventions. For instance, prepayment penalties are generally paid by the seller when paying off a loan early, but this is less common as it's not a standard closing cost. Home warranty fees are usually negotiated and can be charged to either party, but they are not universally a seller's obligation. Transfer taxes are often shared between buyer and seller or solely charged to the buyer, depending on local customs. Thus, the existing loan payoff stands out as a clear responsibility of the seller at closing.