Closing costs

How it is used

American English. Buyers usually plan for closing costs of a few percent of the price, and the exact figures appear in the closing documents. British buyers speak of buying costs or completion costs instead.

Example sentences

1. Don't forget closing costs; they can add several thousand dollars to the purchase.

2. The seller agreed to pay part of the buyer's closing costs.

Common collocations

• pay closing costs
• estimate closing costs
• seller-paid closing costs
• cover closing costs

Related terms

• closingThe final stage of a property sale, when the remaining money is paid, the documents are signed and ownership passes from the seller to the buyer.
• transfer taxA tax charged when ownership of a property passes from one person to another, usually calculated as a percentage of the price.
• commissionThe fee an agent earns for selling or letting a property, usually a percentage of the sale price or of the rent.
• stamp dutyA tax paid in England and Northern Ireland by people who buy property or land above a certain price. Its full name is Stamp Duty Land Tax (SDLT).
• escrowAn arrangement in which a neutral third party holds money or documents until all the conditions of a deal are met, then releases them to the right person.

More terms: Fees, Costs & Taxes

• property tax
• service charge
• capital gains tax
• depreciation