Who Pays Closing Costs in New Jersey?

marketing669181
4 days ago
2 min read

When it comes to buying or selling a home in New Jersey, one of the most common questions we hear at ClosePoint USA is:“Who pays the closing costs?”

The answer? It depends on your role in the transaction—buyer or seller—and the terms negotiated in your contract. Let’s break down exactly what closing costs are, who pays what in a typical NJ transaction, and how to be financially prepared.

💡 What Are Closing Costs?

Closing costs are the fees and expenses that need to be paid to finalize a real estate transaction. These costs are separate from the home’s purchase price and include things like:

Title insurance
Attorney fees
Transfer taxes
Mortgage lender fees
Appraisal and inspection fees
Recording fees
Escrow deposits for taxes and insurance

🏡 Who Pays Closing Costs in New Jersey?

📌 Buyers Typically Pay For:

Title Insurance (Lender's and Owner's Policies)
Loan Origination Fees
Appraisal and Credit Report Fees
Attorney Fees (if applicable)
Survey Fees (if needed)
Recording Fees
Prepaid Property Taxes and Homeowners Insurance
Escrow Account Setup (if required by lender)

These can add up to 2–5% of the home’s purchase price, depending on the loan and property.

📌 Sellers Typically Pay For:

Real Estate Agent Commissions (usually 5–6%)
NJ Realty Transfer Tax
Attorney Fees
Outstanding Property Taxes or Liens
Mortgage Payoff and Associated Fees
Homeowners Association (HOA) Fees or Condo Resale Docs
Certificate of Occupancy (if required by municipality)

Sellers in NJ often pay the larger portion of costs due to commissions and state taxes.

🤝 Can Closing Costs Be Negotiated?

Absolutely. In some cases, buyers may negotiate for sellers to cover some of their closing costs—often referred to as seller concessions. This is more common in a buyer’s market or when a seller is motivated to close quickly.

Keep in mind: mortgage lenders limit how much a seller can contribute toward buyer closing costs—typically 3–6% depending on the loan type.

📍 NJ-Specific Costs to Know

NJ Transfer Tax: Paid by the seller, based on the sale price
Mansion Tax: If the home sells for $1 million or more, buyers pay a 1% tax
Attorney Review Period: NJ requires a 3-day attorney review window after signing a contract

🧾 How ClosePoint USA Helps

At ClosePoint USA, we’re here to make your closing process clear, smooth, and stress-free. Our experienced team ensures you understand every line item on your settlement statement and keeps communication open between all parties involved.

Whether you're buying your first home or selling your third, we’re here to make closing day a success.