Costs – soft definition
Costs – soft or “soft costs” means amounts spent on real estate aside from those associated with the labor and materials needed to physically create the finished space, such as permits, title work, engineering, and the wages paid to developers and others who contribute to the development of finished space but do not work on the physical building or primarily at the building’s site. These examples do not constitute an exhaustive list, and FHLB reserves the right to classify costs as soft costs at its discretion.