Tax Closing Costs

A home transaction is a significant financial decision. If you have questions about how taxes may affect your overall financial picture, be sure to consult with a tax attorney or accountant. If you're considering selling your home within the first two years of ownership, check with your financial advisor before putting your home on the market.

Property Taxes
This is the one closing cost that is often prorated between the buyer and seller. If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer will be occupying the property. Likewise, if the taxes have not yet been paid, the seller typically reimburses the buyer for the period in which the buyer occupied the property.

Transfer Taxes and Recording Fees
This is the cost for transferring ownership of the property and recording the purchase documents. The fee is often calculated as a percentage of the sales price.