Buyer / Seller Guides – What are Closing Costs?

At Alliance Title, we take pride in providing the best overall closing experience for our agents, lenders, and customers. Closing costs can seem a little confusing and overwhelming; through our Buyer / Seller Guide, we assist you through the process. Let’s go through the “What,” “Who,” and “When” of closing costs.


Other than the down payment and cost of the property, closing costs are additional fees that need to be paid at the time of closing.

This may involve:

  • Escrow fees
  • Title insurance premiums
  • Tax prorations
  • Loan fees
  • Deed recording fees
  • Real estate commissions
  • & more


There are many differences that usually play out between buyer and seller when it comes to closing costs. Listed below is the standard distribution, but it might differ on what works best for each party.

The buyer pays for:

· The lender’s title policy premiums

· Escrow fees

· Recording charges for all documents in     buyer’s name

· Tax proration

· HOA prorates and transfer fees

· All new loan charges

· Fire premium insurance for the first year

The seller pays for:

· Owner’s title insurance premiums

· Escrow fees

· Real estate commission

· Document recording and release fee for     deed

· Any loan fees required by buyer’s lender

· Payoff of all loans in seller’s name or   against the property

· Interest accrued by lender being paid off,   statement fees, etc.

· Any judgements, tax liens, etc. against the    seller

· Any and all delinquent taxes



Most buyers anticipate receiving their keys the day of closing; however, this usually doesn’t happen until a day, or a few days, after signing.

The transaction does not ‘close’ until all the funds have been cleared and provided to the title company, and the deed to transfer title is recorded at the county courthouse.


Whether you’re buying or selling a commercial or residential property, the professionals at Alliance are excited to help make your next transaction a success!

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