It's frequently waived for derelict property that the buyer intends to tear down anyway. But the law requires nothing except that the agreement is in writing, reflects its true intent and is signed by competent principals. The problem has escalated. Some charge none at all that the contract doesn't specifically allow, others charge everything they dare and lately, they seem to dare more and more. Shop Around Timing, however, makes this approach impractical.
Lenders know that borrowers shop around for the best deal.
They compare not only interest rates, but also the bottom line on closing costs. To appear more competitive, lenders give them a good faith estimate that leaves out several of their expenses. Rather than absorbing these expenses as overhead, they've discovered that most sellers are either simply naive about closing costs or aren't about to kill the sale at the last minute because of a couple hundred dollars in excess charges they're bullied into paying. It's a game of financial chicken. Trouble is, when you go eyeball to eyeball in this game, if someone doesn't blink, everyone loses.