Who is typically responsible for paying the closing costs in a real estate transaction?

In a real estate transaction, it is common for both the buyer and seller to be responsible for paying various closing costs. Closing costs can include a variety of fees such as title insurance, appraisal fees, inspections, and attorney fees, among others. These costs can be negotiated as part of the sales agreement, and different markets or individual transactions might have different customs regarding which party pays specific fees.

Typically, buyers often cover costs related to their loan, such as lender fees and recording fees, while sellers may pay for transfer taxes and commissions. However, in many cases, both parties contribute to the overall closing costs, leading to the conclusion that both buyer and seller share responsibility for these expenses. This cooperation can be part of the negotiation process in reaching an agreement, and understanding this practice is crucial for anyone involved in real estate transactions.