Who's Responsible for Closing Cost?

Closing costs are paid according to the terms of the purchase contract made between the buyer and seller. Usually the buyer pays for most of the closing costs, but there are instances when the seller may have to pay some fees at closing too.

What is buyer responsible for at closing?

Both buyers and sellers pay closing costs to the service providers who help facilitate the transaction. Typically, the buyer's costs include mortgage insurance, homeowner's insurance, appraisal fees and property taxes, while the seller covers ownership transfer fees and pays a commission to their real estate agent.

Who pays closing costs by default?

Most of the closing costs are the responsibility of the home buyer, which typically average about two to five percent of the sale price. For a home that's $250,000, closing costs can be anywhere between $5,000 and $12,500. Among the expenses are things like: Attorney Fees.