Closing Costs

The seller typically pays for warranty deeds, documentary stamps, title insurance, and commissions.

Who pays for which expenses at closing?

Closing costs are customarily, but not always, divided between the buyer and seller, as follows^*:

Buyer

• Recording Fees – Record Deed: $10.60 first page, $8.50 each additional page; Record Mortgage: $10.60 first page, $8.50 each additional page
• State Documentary Stamp Tax – $0.35 per $100.00
• Intangible Tax on Mortgage – 2 mils per dollar of exact mortgage amount (approx. $2 per thousand)
• Taxes – Current year’s real estate taxes are prorated at closing – depends upon closing date, however there must be enough in escrow to pay for following years taxes.
• Survey – $500
• Lender’s Title Insurance Policy – If issued simultaneously with Owner’s Policy, $400 to $600 in most cases.
• Endorsements to Lender’s Policy – 10% of total amount of Title Insurance being issued, plus $35.00 for each additional endorsement.
• Express Mail – If applicable, charged to the appropriate party $25 – $50
• Insurance – Contact Allstate. 1st year’s premium must be paid at or before closing and additional 2 months must be escrowed.

Seller

• State Documentary Stamp Tax for Deed of Conveyance – $0.70 per $100.00 of sales price or fraction thereof
• Assessment Search – $70.00 – $80.00, depending on City
• Owner’s Title Insurance Policy – Based on the sales price ($5.75 per $1000) up to $100,000 & $5.00 per $1000 after $100,000
• Taxes – Current year’s real estate taxes are prorated at closing
• Title Search, Exam and Closing Fee – Approximately $600.00

^* Prices are subject to change without notice

What items are needed at closing?

You will want to have these items complete or in hand when you come to the closing (please confirm with your escrow officer prior to closing):

Buyer

• Buyer’s copy of purchase agreement
• Cashier’s check for amount needed to close
• Proof of purchase of insurance for fire, casualty, etc.
• Photo identification (passport, driver’s license, or state-issued identification card)

Seller

• Seller’s copy of purchase agreement
• Any unrecorded instruments that affect the title
• Proof of satisfaction of any mechanics’ liens, chattel mortgages, judgments, or mortgages that were paid prior to the closing
• Photo identification (passport, driver’s license, or state-issued identification card)