WHAT'S INCLUDED IN CLOSING COSTS AND WHO PAYS THEM?

Closing costs vary by county, and are different for buyers and sellers, but here is a quick breakdown of what can be included.


In Franklin County Ohio, there are typically six components to closing costs.

  1. The first is title insurance. Title insurance assures the new owner that they have legal ownership of the property.

  2. Another closing cost is the conveyance fee. This is a tax collected by each county on the sale of every home.

  3. The next closing cost only applies if the home you’re buying or selling is part of a homeowners’ association. If it is, you may be required to pay a fee to transfer the HOA into the new owner’s name, or pay a “buy-in” fee to join the association. The amount due at closing varies from HOA to HOA.

  4. Another line item on a sellers’ closing statement can be a home warranty. Often a seller will provide the buyer with a 12-month insurance policy that covers the cost of replacing or repairing lower out-of-pocket expenses in the event something goes wrong in the first year of ownership.

  5. Tax prorations are another component to a sellers’ closing costs. Tax prorations are based on the current assessed real market value of the property being sold and can vary widely depending on location and value of the property.

  6. The final component to a sellers’ closing costs is title processing fees. These can include things like a closing fee, title exam, funding fee, wire transfer fee, etc. It’s important to note that these are fees that each individual title agency has control over. These fees can vary widely, so it pays to get a recommendation from your trusted real estate agent or lender. While it’s your decision which title company to close with, your decision should be based on an excellent reputation for title work, service, fraud protection, and cost.

Realtor fees are not technically closing costs, but it’s important to note that these are paid by the seller, and due at the time of closing. They will appear as a separate line item on the closing statement, most commonly with half paid to the seller’s agent and half paid to the buyer’s agent.


Working closely with a reputable lender and REALTOR can help ensure that you aren’t met with any unexpected costs at closing.


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