Closing costs are formally itemized on a HUD* settlement form nationally known as the “closing settlement” form.  There are two sides of this form, one for the buyer and the other side for the seller.  The numbers are reconciled by a closing company and in Massachusetts generally by the bank’s attorney. 

These are the most common items that a Seller will see:

              1.       attorney fee for deed preparation

              2.       attorney fee for document review and closing process

              3.       real estate professional fee

              4.       mortgage discharge fee (per mortgage)

              5.       adjustment of real estate taxes

              6.       adjustment of water, sewer, trash, fuel, HOA fees

              7.       deed stamp taxes (In Massachusetts $4.56/mil)

              8.       wire fee or Federal Express charge for mortgage payoff

The above costs are paid by the Seller.  In some cases, the Buyer has negotiated that the Seller pay some or all of the Buyer’s closing costs.  This negotiated agreement is between buyer and seller and will be outlined in the Purchase and Sales Agreement.  In these cases, you will see costs that are typically paid by the Buyer reflected on the Seller’s side of the settlement form.  There are limitations and restrictions to the amounts paid by the Seller on behalf of the Buyer.  The closing attorney should be fully aware of those limitations and will also be able to fully explain questions you may have regarding closing costs.  This  HUD Settlement Form should be kept in a handy spot as some costs may be tax deductible.

*US Dept of Housing and Urban Development

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