ABA Family Legal Guide

Buying and Selling a Home

The Steps of Buying and Selling a Home

Closing Costs

Is the seller responsible for any closing costs?

The parties can negotiate who will pay the various costs at closing. These obligations should be set forth in the contract. Generally, the seller is responsible for paying the real estate agent's commission on the sale, the seller's lawyer's fees, real estate taxes on the property to the date of closing, certain transfer taxes, and any liens that may be outstanding on the property, including any money due the current lender. Depending on local custom, the seller may also be required to pay the cost of a title insurance policy for the buyer that insures the buyer against any defects in the title to the property. In other states, the buyer customarily pays for title insurance. In either event, this obligation can be negotiated in the contract. On occasion, the seller may pay some of the costs of the buyer's loan, in order to induce the buyer to go through with the sale.