Closing/Settlement
What are Closing Costs?
Closing costs are fees associated with the transfer of ownership of a house that are paid at closing. These costs do not include the purchase price of the home. Rather, they are the extras – fees and expenses aside from the purchase price.
Who is responsible for Closing Costs?
Buyers and sellers both pay closing costs. However, the exact amounts paid can vary significantly from area to area and depending on what agreements the buyers and sellers come to in the offer-counteroffer process.
Typical Buyers' closing expenses include: fees associated with obtaining a mortgage; inspection fees; homeowner's insurance (must be prepaid for one year at closing); portion of property taxes and transfer taxes, if there are any; title insurance and closing fees; and attorney's fees (if and where attorneys are involved in the transaction).
Typical Sellers' closing expenses include: loan payoff fees; real estate commission; title insurance; cash payments in lieu of repairs to the property; portion of property taxes and transfer taxes, if there are any; attorney's fees where applicable; and other fees negotiated during the transaction. Transfer or Grantor's tax has recently changed has been raised this rate to approx. $5.00/$1000 of sales price.