Seller and Buyer Closing Costs State By State

Seller and buyer closing costs can really add up. High seller closing costs and fees can cut into the profit a seller is expecting to pocket from the sale of his or her home or increase the amount of money the seller needs to come to the closing if the seller owes more money on his mortgages than the amount he or she will net from the sale of the home.

Likewise, buyer closing costs can increase the amount of money a buyer needs to close on the purchase a home.

We have several other articles on ThinkGlink.com that list the endless seller and buyer closing costs you’ll encounter when you buy or sell property. You should read those articles for more detailed information on the seller and buyer closing costs you’ll encounter. You can link to these other articles here:

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Buyer Closing Costs

Seller Closing Costs.

Addressing the Forgotten Seller and Buyer Closing Costs: Title Insurance and Survey Costs

Most people remember many seller and buyer closing costs but two closing costs that are at times forgotten are title insurance expenses and survey costs.

In just about every state, the buyer must pay for title insurance expenses related to their loan with their lender. In some states ,the seller pays for the owner’s title insurance policy as a seller closing cost. In other states, the buyer pays for the owner’s title insurance policy as a buyer closing cost.

An owner’s title insurance policy insures the new buyer of the home against title insurance problems and issues. Done right, an owner’s title insurance policy will protect a buyer against forged documents, lien claims, undisclosed easements and other agreements, and claims by others against the new buyer’s ownership interest in the property.

Finally, in many states, if you want to make sure you know what you are buying and that there are no title insurance problems or issues relating to property boundaries or other survey issues, you need to come to the closing with a plat of survey.

The plat of survey will depict the building and other structures located on the land you are buying and draw out any potential problems with that particular piece of land. If the neighbor’s garage is actually a foot onto the property you are buying, the survey should disclose that.

For more information on surveys, read:

No Survey Leads to Big Problems.

STATE BY STATE GUIDE TO PAYING FOR TITLE INSURANCE AND SURVEYS

SEE BELOW TO DETERMINE THE PARTY THAT MAY BE RESPONSIBLE FOR THE PAYMENT OF TITLE INSURANCE COSTS AND SURVEY EXPENSES FOR THE FOLLOWING STATES:

STATE TITLE INSURANCE SURVEY
ALABAMA Negotiable Negotiable
ALASKA Seller Seller
ARIZONA Seller Buyer
ARKANSAS Seller Negotiable
CALIFORNIA Varies Buyer
COLORADO Seller Negotiable
CONNECTICUT Buyer Buyer
DELAWARE Buyer Buyer
DISTRICT OF COLUMBIA Buyer Buyer
FLORIDA Seller Negotiable
GEORGIA Negotiable Buyer
HAWAII Varies Negotiable
IDAHO Seller Negotiable
ILLINOIS Seller Seller
INDIANA Seller Buyer
IOWA Negotiable Negotiable
KANSAS Varies Seller
KENTUCKY Buyer Buyer
LOUISIANA Buyer Negotiable
MAINE Buyer Buyer
MARYLAND Buyer Buyer
MASSACHUSETTS Buyer Buyer
MICHIGAN Seller Negotiable
MINNESOTA Negotiable Negotiable
MISSISSIPPI Seller Negotiable
MISSOURI Varies Seller
MONTANA Seller Negotiable
NEBRASKA Divided equally Seller
NEVADA Seller Negotiable
NEW HAMPSHIRE Buyer Buyer
NEW JERSEY Buyer Buyer
NEW MEXICO Seller Buyer
NEW YORK Buyer Negotiable
NORTH CAROLINA Buyer Buyer
NORTH DAKOTA Buyer Buyer
OHIO Negotiable Buyer
OKLAHOMA Buyer Buyer
OREGON Seller Buyer
PENNSYLVANIA Buyer Buyer
RHODE ISLAND Buyer Buyer
SOUTH CAROLINA Buyer Buyer
SOUTH DAKOTA Divided equally Buyer
TENNESSEE Seller Negotiable
TEXAS Seller Negotiable
UTAH Seller Buyer

Use this information only as a guide in determining buyer or seller closing costs when planning for your home purchase or sale. Keep in mind that some of these costs may change from county to county, depending on the custom in each county. For more information, you can call a title insurance company in your area and ask them to tell you who typically pays for these expenses in your area or talk to a real estate attorney in your community. Frequently, most real estate sales agents and brokers are also quite knowledgeable on the issue of who pays for what when it comes to some of these expenses.

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You should also know that title insurance costs vary from state to state. For example, in some states, the owner’s title insurance policy on a $100,000 home may cost $1,500 and that same policy in a different state may cost two or three times that amount. Furthermore, title insurance fees seem to multiply if you are buying a home and you have a lender involved. With a lender, buyer closing costs can mushroom by including a lender’s title insurance policy along with “required” endorsements.


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© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.

3 Responses to Seller and Buyer Closing Costs State By State

  1. Laraine says:

    I am thinking of selling a home in Florida.
    Could you please tell me who is responsible for the survey of the property in Fl? Bringing electrical up to code. If you as the buyer want to have it rezoned.
    I am sure the laws are probably different in Fl than they are in Mi.

  2. John says:

    “State by state…” and yet at least 6 states are missing from the list. Any state that starts with V or W is oddly missing. Sadly, I live in one of those states so this article is useless.

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