Who Pays for Closing Costs in North Carolina?

Buying or selling a home in North Carolina comes with various expenses, and closing costs are among the most significant. Serving the greater Charlotte area since 2010, Matheson Law Firm, P.A. is here to demystify these costs and help you navigate your real estate transaction with confidence.
What Are Closing Costs?
Closing costs include the fees and expenses required to finalize a real estate transaction. They typically range from 2% to 6% of the purchase price and include things like loan origination fees, appraisal fees, title insurance, taxes, and recording fees.
Who Pays Closing Costs in North Carolina?
Buyers and sellers determine the responsibility in the contract. The total depends on the specifics of the transaction and both parties’ willingness to negotiate closing costs.
For instance, in standard form sales contract, costs are divided a certain way, but it’s open to negotiation. In new construction, the builder might offer to cover certain closing costs as an incentive or shift customary seller costs onto the buyer. And in foreclosures, the bank may have specific stipulations about who pays what.
Closing Costs Paid by the Buyer
If you’re the buyer in a real estate transaction, get ready to open your checkbook for the following expenses:
- Loan-related fees, including application, origination, and underwriting fees charged by your lender
- Home inspection fees, which are payments for a professional to assess the property’s condition
- Appraisal fees to determine the property’s fair market value
- Title search and title insurance to ensure the property’s title is clear of any liens or disputes
- Settlement fee to coordinate the closing, prepare the settlement statement and receive/disburse the money
- Buyer real estate agent commission may be paid by the buyer if the seller does not agree to pay all or some of the commission due to the buyer’s agent
- Recording fees to officially document the change of ownership with the county
Closing Costs Paid by the Seller
Sellers aren’t off the hook, either. Here are the closing costs that typically fall to them:
- Real estate agent commissions amounting to a small percentage of the sale price, often split between the buyer’s and seller’s agents
- Transfer taxes to move the property’s title to the new owner
- Homeowners Association transfer fees charged by the management company to provide the buyer neighborhood documents, a statement of account and assessment information.
- Repairs or concessions to cover the cost of any repairs or financial concessions agreed upon during negotiations
Can the Buyer and Seller Negotiate?
Absolutely! In real estate, negotiation is the name of the game. Buyers and sellers can discuss and agree on who pays what. For example, a seller might agree to cover certain buyer closing costs to sweeten the deal.
Buyers can also negotiate for credits or concessions to offset some of the upfront expenses of purchasing a home.
What to Expect During Closing in North Carolina
The closing process is the final step of your real estate journey. Here’s what typically happens:
- Review the Closing Disclosure: Both parties examine this document, which details all costs and indicates who is responsible for each.
- Conduct a final walkthrough: The buyer usually gets to inspect the property one last time to ensure it’s in the agreed-upon condition before signing.
- Sign the paperwork: Both parties have numerous documents to sign at closing.
- Transfer funds: The buyer pays their share of the closing costs, and sellers receive the proceeds from the sale.
- Transfer the title: The property’s title is officially transferred to the new owner, and the sale is final.
Choose Matheson Law Firm
At Matheson Law Firm, we understand that the North Carolina real estate closing process can be complex. Our personalized services help the process go smoothly and efficiently. Our real estate attorneys are responsive to your inquiries, offer secure document exchange, and provide convenient closing times. Plus, we’ll coordinate efforts between buyers, sellers, agents, and lenders for a fair transaction.
If you’re in the greater Charlotte area, contact us today to speak with an attorney about handling your real estate closing with the professionalism and attention it deserves.