Real estate glossary
Seller closing costs
Also called: Closing costs
The fees and charges a seller pays at closing, such as commissions, escrow and title fees, transfer taxes and prorated bills.
Closing costs are deducted from your sale proceeds at closing. For sellers they often include brokerage commissions, your share of escrow fees, title insurance if it is customary for sellers to pay it in your area, documentary transfer taxes, HOA fees and prorated property taxes.
Paying off your mortgage is not technically a closing cost, but it is usually the largest deduction on your statement.
What it means for you as a seller
Ask for an estimated net sheet early so the amount you actually walk away with is not a surprise.
Related terms
- Settlement statementThe final itemized accounting of every charge and credit in the sale, showing how much the seller receives.
- Real estate commissionThe fee paid to real estate brokers for a sale, usually a percentage of the price, agreed in writing and always negotiable.
- ProrationsSplitting ongoing costs like property taxes or HOA dues between buyer and seller based on the closing date.
- Payoff statementThe lender's statement of exactly how much it takes to pay off a loan in full on a given date.
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .