Closing Costs

1.  Seller's attorney fees, often in the range of $800-$1500.

2.  A newly prepared deed conveying title to the buyer.  In the event seller does not have an attorney, most bank attorneys will draw a deed for approximately $100.00.  Adequate notice of request to prepare a new deed is needed.  If the seller has an attorney, then the fee above includes the deed preparation.

3.  Massachusetts excise stamps are charged to the seller upon transfer of title, and they are $4.56 per $1,000.00. These are paid at closing by the closing attorney, and funds are taken from the proceeds of the sale.

4.  Outstanding mortgages or other liens which are outstanding must be paid off at closing.  Often written notice is necessary before lenders will release the payoff figures.  The lender's fee to prepare the discharge and record same is in the $100.00 range.  

5. Adjustments to condo fees (condo), final water & sewer bill (if metered separately), and oil readings are made at closing.  

6.  Brokerage fee is due and payable at closing.

7.  A smoke detector certificate must be issued by the Fire Department.  The ordering of this needs to be coordinated well in advance, as no closing can take place without a recent certificate (usually within sixty days) issued by the Fire Department.  Certificates issued for prior sales are unacceptable.  Costs for this certificate are the obligation of the seller ($50 in Cambridge for single-dwelling units, $100 for two unit buildings, $150 for three-six unit buildings).  Your Real Estate Agent will typically arrange the appointment with the fire department.

8.  A 6d Certificate (applicable to condominiums only) is required at closing in the form of a notarized statement from the trustees or board of manages of the condominium certifying that all outstanding condominium fees have been through the end of the month of the closing.  Some condo property managers charge a fee to prepare the 6d, and this would  be paid by the seller in advance of closing. 

9.  If the seller has received the tax bill from his city or town, it should be brought to the closing whether paid or unpaid.  If the tax bill is paid, bring to the closing a stamped receipt and inform the conveying attorney prior to the closing that you will be bringing your receipt.  This, along with the municipal lien certificate (which will have been ordered by the buyer's attorney), documents your lien status. 

10.  If there are to be holdbacks or escrows because of outstanding issues, these issues need to be discussed well before the closing date.  Mortgage lenders have become more stringent about holdback agreements and require that they be approved by the lender prior to closing.

Please note!  This is meant to be a general guide, but cannot be conclusive.  The list and amounts of fees can be different each time, depending on the lender, the attorney, and the loan.  Your attorney and lender will be able to give you estimates well in advance of closing. 

1. Attorney fees for the bank and the buyer for title search, drawing papers, etc. (usually around $650-$1200).  The attorney's fee is lower if he/she also represents the lender.  Ask your attorney about this.

 2. Recording fees – around $400 ($125 for the deed, $175 for the mortgage, $35 for the declaration of homestead, and $65 for the municipal lien certificate).

 3. Courier fee - $30-$60.

 4. Survey and plot plan - $150.

 5. Municipal lien Certificate -  ranges from $25 to $65 depending on where the property is.

 6. Bank charge for credit report and flood certification fee - $50-$75. 

 7. Title insurance - usually right around $4.00 per thousand of purchase price. 

 8. Tax escrow amount - often between 2 and 6 months, depending on when in the tax cycle you’re closing. Ask your attorney about this.

 9. Appraisal fee - ranges - usually $400-$600.

 10. Hazard Insurance - for single and multi-families - most banks require a one-year, prepaid insurance policy. 

 11. Points, if applicable.
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 Please note!  This is meant to be a general guide, but cannot be conclusive.  The list and amounts of fees can be different each time, depending on the lender, the attorney, and the loan.  Your attorney and lender will be able to give you estimates well in advance of closing.