Both do. Buyers usually pay loan fees, the appraisal, inspections, prepaid items and the lender’s title policy. Sellers usually pay off their mortgage and liens, often the transfer tax, and any agent commissions they agreed to. Who pays what is negotiable and varies by state and county, so see your state below.
Do closing costs include realtor fees?
Agent commissions are usually paid at closing from the seller’s proceeds and appear on the settlement statement, but they aren’t part of the buyer’s closing costs unless the buyer agreed to pay their own agent. Commissions aren’t set by law and are negotiable. Beycome Title charges a $99 settlement fee in Florida (prepaid on beycome.com) and $299 in Texas. Starting November 1, 2026, it also closes in Michigan ($199), Ohio ($299), Illinois ($599) and Indiana ($199) with prepaid pricing.
Buying in Florida? Beycome Mortgage (NMLS #2523620) has a Florida buyer closing-cost table with typical costs on a $400,000 purchase. It’s an affiliate of Beycome, and you’re not required to use it.
Example only. Commissions aren’t set by law or by NAR rules and are always negotiable. Sellers choose whether to offer compensation to a buyer’s agent, and since August 17, 2024 that offer can’t be shown on the MLS.
Both buyers and sellers pay closing costs, but there is no single nationwide rule for dividing them. Buyers commonly pay expenses related to their mortgage, appraisal, inspections, and lender’s title insurance. Sellers commonly pay to clear existing liens and may agree to contribute toward the buyer’s costs. Title charges, recording fees, and transfer taxes depend on the state, the county, and the purchase contract. A seller credit can change what the buyer pays at closing.
Here is what to watch for in each state.
Alabama
Buyers and sellers can negotiate how most closing costs are divided. Buyers generally budget for loan and inspection expenses; sellers generally budget for paying off their existing mortgage and resolving title issues. Alabama charges a tax when deeds are recorded, so the contract should specify who pays that charge and the other recording costs.
California
California transactions typically use an escrow company to coordinate the closing. Buyers often pay mortgage-related costs, while sellers often pay the costs associated with delivering the property and satisfying existing liens. Who pays for the owner’s title policy, escrow services, and documentary transfer tax varies by location and agreement. Check the county and city charges before accepting an estimate.
Connecticut
Buyers typically pay their loan, inspection, and title-related costs. Sellers pay the state and municipal real estate conveyance taxes associated with transferring the property, unless a different arrangement is permitted and agreed to. The seller or the seller’s representative files the conveyance tax return.
Florida
Closing costs are negotiable, and the purchase contract should say who pays for the owner’s title insurance policy and selects the closing agent. Local practices differ across Florida counties, so do not assume the same title arrangement applies everywhere. Buyers commonly pay loan-related costs; sellers commonly pay to satisfy existing liens. Florida also charges documentary stamp tax on deeds and, when applicable, on mortgage documents. State tax liability does not by itself settle how the buyer and seller allocate those charges in their contract.
Before accepting an offer, check who will handle title, what the title and settlement services will cost, and who will pay each charge. You can request an estimate from Beycome Title.
Georgia
A closing attorney handles the legal closing work. Buyers and sellers can negotiate how the attorney’s fees and other closing expenses are divided. Georgia holds the seller liable for the real estate transfer tax, although the parties may agree in their sales contract that the buyer will pay it.
Illinois
Buyers commonly pay financing, inspection, and some title-related expenses. Sellers commonly pay to discharge their liens and may pay transfer taxes under local practice or the purchase agreement. Illinois imposes a state real estate transfer tax, and counties or municipalities may impose additional charges. Review the costs for the property’s exact location, particularly within the Chicago area.
Starting November 1, 2026, Beycome Title closes in Illinois with prepaid pricing: $599 instead of $995.
Indiana
The contract determines how buyers and sellers divide most closing expenses. Buyers commonly pay loan and inspection costs; sellers commonly pay to clear existing liens. Indiana property transfers also involve a sales disclosure process and may carry county recording or transfer fees. Ask the closing agent for an itemized estimate rather than applying a statewide percentage.
Starting November 1, 2026, Beycome Title closes in Indiana with prepaid pricing: $199 instead of $245.
Michigan
Buyers commonly pay financing, inspection, and some title expenses. Sellers commonly pay off existing liens, and the purchase agreement should address title and closing charges. Michigan imposes state and county real estate transfer taxes on applicable transfers; confirm any exemption and who will bear the cost before closing.
Starting November 1, 2026, Beycome Title closes in Michigan with prepaid pricing: $199 instead of $245.
Minnesota
Both parties should expect closing expenses. Buyers commonly pay mortgage, appraisal, and inspection costs; sellers commonly pay to clear liens and for charges assigned to them in the contract. Minnesota charges a deed tax when a deed is recorded and a mortgage registry tax when a mortgage is recorded. Ask the closing agent to show these separately from title and lender fees.
New Jersey
Buyers commonly pay mortgage, inspection, and title-related costs. Sellers are statutorily responsible for New Jersey’s Realty Transfer Fee. For certain property transfers above $1 million, the seller is also responsible for an additional Graduated Percent Fee. These charges can make a substantial difference to a seller’s proceeds, so get a property-specific estimate.
New York
Buyers commonly pay loan, title, and legal expenses; sellers commonly pay to discharge their liens and for their own legal representation. New York’s base real estate transfer tax is generally the seller’s responsibility, subject to the rules governing the transaction and its contract. For qualifying residential purchases of $1 million or more, the buyer generally pays the additional tax known as the mansion tax. New York City can impose further transfer taxes, so location matters.
North Carolina
Buyers commonly pay their inspection, financing, and closing attorney expenses, subject to the contract. Sellers commonly pay to clear liens. North Carolina’s excise tax on a conveyance is $1 for each $500, or fraction of $500, of the taxable value, equivalent to $2 per $1,000 when the price falls on an even $1,000 increment. State law requires the transferor to pay it before the deed is recorded.
Ohio
Buyers and sellers negotiate most closing expenses, including title and settlement charges. Buyers commonly pay loan-related fees; sellers commonly pay to clear existing liens. Ohio also collects a real property conveyance fee, which can include a county component. Confirm the applicable amount and its allocation in the purchase agreement.
Starting November 1, 2026, Beycome Title closes in Ohio with prepaid pricing: $299 instead of $345.
Pennsylvania
Both parties should budget for closing costs. Pennsylvania imposes a 1% state realty transfer tax, and local transfer taxes are often added. The state holds the buyer and seller jointly and severally liable for its tax, so their contract should clearly state how they will divide the payment. Buyers also commonly pay loan-related expenses; each party’s other charges depend on the agreement and local practice.
Rhode Island
Buyers commonly pay loan and inspection expenses, while sellers pay to clear existing liens. Rhode Island’s real estate conveyance tax is generally payable by the seller or other transferor unless the parties agree otherwise. That makes the original assumption that the buyer typically pays all closing costs inaccurate.
South Carolina
The purchase contract determines how many closing expenses are divided. Buyers commonly pay loan and inspection costs, and sellers commonly pay to clear their liens. South Carolina also charges a deed recording fee. The grantor is generally liable for that fee under state rules, so it should appear clearly on the closing statement.
Tennessee
Buyers and sellers can negotiate most closing charges. Buyers commonly pay financing and inspection expenses; sellers commonly pay off existing liens. Tennessee imposes a realty transfer tax when the deed is recorded, and the transferee is responsible for it under the state’s tax guidance. A financed purchase may also involve a separate mortgage recordation tax paid by the borrower.
Texas
Texas buyers commonly pay loan, appraisal, and inspection expenses; sellers commonly pay to resolve existing liens. The owner’s title insurance premium, escrow fee, survey, and other charges should be assigned in the purchase contract. Customs vary by area and can be negotiated, so a blanket “buyer pays 3% to 4% and seller pays 1% to 3%” estimate may misstate a particular deal.
Virginia
Buyers commonly pay loan, inspection, and title-related expenses. Sellers commonly pay to clear liens. Virginia distinguishes between a recordation tax generally associated with the grantee and a grantor’s tax associated with the seller. Local charges may also apply, so the closing estimate should list each tax separately.
What about other states?
The same starting point applies beyond the states listed here: review the purchase agreement and request an itemized estimate for the property’s county and city. Confirm who pays transfer taxes, deed and mortgage recording charges, the owner’s and lender’s title policies, settlement or attorney fees, property tax prorations, and any agreed seller credit. If you are financing the purchase, compare the lender’s Loan Estimate with the final Closing Disclosure before you sign.
Read more:
How much is the average closing cost?
