Buyers and sellers of real property will encounter various closing costs in a real estate transaction. Each transaction is different and costs can be paid by buyer and seller, depending on the lender's requirements. In cash and conventional mortgage transactions, typically the seller is responsible for paying the costs of these items:

• Conveyance Tax (Transfer Tax) on the Deed - currently $1 per $100 of the sales price.
• Pay-off existing mortgages on the property, if any, and the recording fees for the satisfaction of the mortgage.
• The commission paid to a Realtor® for marketing and selling the property (commissions are negotiable).
• Preliminary Title Report
• Termite inspection and clearance (price varies).
• 50 percent of escrow fee.

In cash and conventional mortgage transactions, typically the buyer is responsible for paying the costs of these items:

• Recording fees for the deed to the property and the mortgage, if any.
• Homeowner's Insurance, a one year policy (price depends on the amount of coverage and property type).
• Building Inspection if desired by the buyer (the price varies).
• Title Insurance policy.
• Hurricane Relief Fund .01 percent
• 50 percent of escrow fee

If not a cash sale, the buyer would be responsible for:

• Items which must be paid in advance like property taxes, homeowner's insurance, and Private Mortgage Insurance, if applicable.
• Loan discount points and origination fees which are costs of borrowing (figured as a percentage of the mortgage amount).
• A credit report, an appraisal, Flood Link Certification, and sometimes application fees which are typically required by the lender or mortgage company.

There may be other fees not outlined in this discussion but nonetheless charged to either buyer or seller in a real estate transaction. Consult your Realtor® and ask any lender to submit a truth-in-lending agreement before you borrow money to purchase a home. Other mortgage programs from the U.S. Department of Housing and Urban Development or Department of Veterans Affairs have more specific requirements.