I get asked all the time, how much will it cost to close? Closing cost can have a different meaning to all parties involved in a real estate transaction. In the simplest description, it could only be the act of transfer, that is, the deed and recording of the deed (Constructive Notice). Lawyers and Title Companies usually prepare the deed and have it recorded. But sometimes the Buyer or a company representing the Buyer (Lender), will want to do some research and determine for sure that they are making a good purchase. Title work is usually done to be sure that the seller does in fact own the property free and clear of any liens or encumbrances. Title insurance is offered to be sure there is no problem with the history of prior owners or transfers. Surveys are sometimes done to be absolutely sure of the property boundaries. Banks usually want an appraisal performed to be sure that the property is worth the amount of money borrowed. In special cases, a Phase I environmental study is done to be sure no contaminates exist on the property. All of the above can be considered “closing cost”. However, as you can see, the actual transfer of the property could be a small cost in the overall “closing”. Therefore, when negotiating the selling price of the property, there should be an agreement as to who pays what part of the closing cost. There is nothing cast in stone who should pay. Some areas of the country have procedures common to their area. The seller really shouldn’t care how much due diligence a buyer or his representatives has and he is not obligated to pay for it. A motivated seller will usually offer to absorb some of the closing cost because he is anxious to make a deal. A seller may have some legal expenses perfecting a title if problems are found.