Closing Costs: Who Pays for What?

Posted on | March 15, 2017

In a typical home purchase, closing costs are incurred by either the buyer or the seller. Familiarizing yourself with the fees that each party to the transaction may be responsible for paying will help you to effectively communicate and educate your clients.

The buyer customarily pays for:

  • Lender’s title policy premiums
  • Escrow fee – 50%
  • Recording charges for all documents in the buyer’s name
  • Tax proration (from the date of acquisition)
  • Home Owners’ Association prorates and transfer fees
  • All new loan charges (except those required by the lender for the seller to pay or otherwise negotiated between the buyer and seller)
  • Fire insurance premium for the first year

The seller customarily pays for:

  • Owner’s title insurance premiums
  • Escrow fee – 50%
  • Real estate commission
  • Document recording and release fee for deed of reconveyance
  • Any loan fees required by the buyer’s lender
  • Payoff of all loans in the seller’s name or against the property
  • Interest accrued by the lender being paid off, statement fees, reconveyance/release tracking fees and any prepayment penalties
  • Any judgments, tax liens, etc. against the seller, including the cost of recording the release document
  • Any and all delinquent taxes

For more information about closing cost fees, visit or contact your local AmeriTitle representative.

AmeriTitle has provided this information for the purpose of familiarizing our clients with closing costs on a typical sales transaction in the states where AmeriTitle operates. Charges on your particular transaction may vary. AmeriTitle assumes no responsibility or liability for the reliance upon the information contained herein.

Share this article:

One thought on “Closing Costs: Who Pays for What?

  1. sylvia puchahes

    mtg loan is paid off who pay for reconveyance lender or borrower


Leave a Reply

Your email address will not be published. Required fields are marked *