30 Oct What a Pennsylvania Buyer Pays at Closing, and What the Seller Covers
A buyer’s closing costs in Pennsylvania can include the lender’s charges, title insurance and settlement charges, the fees to record the deed and the mortgage, prepaid items and an escrow deposit, tax prorations, the buyer’s share of the realty transfer tax and, if the buyer agreed to pay it, the buyer’s agent. The seller’s side can include its own share of the transfer tax, its mortgage payoff, what it owes under its listing agreement, and any credits it agreed to give the buyer.
Who pays what is set by your agreement of sale, so a good part of it is negotiable. Here’s what lands on each side of the settlement table, and where to see your own numbers before closing.
Who decides who pays what?
The agreement of sale does. It says how the transfer tax is split, whether the seller pays anything toward your costs, and who handles any repairs.
The realty transfer tax shows how this works. Pennsylvania’s Department of Revenue says the parties can split the tax “any way they like by private agreement,” but that the Department “is not bound by this private agreement.” Buyer and seller are both jointly and severally liable for the tax, which means it can be collected in full from either one. In Philadelphia, the City says the tax is usually split evenly between buyer and seller, but that this isn’t a legal requirement. We cover the split in Who Pays the Transfer Tax When You Sell a House in Pennsylvania.
What does a buyer pay at closing?
- Lender charges. If you’re financing, these are the lender’s own fees and the services it requires, such as an appraisal if your loan needs one. Your Loan Estimate lists them.
- Title insurance and settlement charges. A lender’s title insurance policy protects the lender, and the Consumer Financial Protection Bureau (CFPB) says it’s usually required to get a mortgage. An owner’s policy protects you, and buying one is your choice. When you’re buying with a federally related mortgage loan, federal law bars the seller from requiring you to buy title insurance from a particular title company as a condition of the sale.
- Recording fees. The county charges to record the deed to you and your mortgage. In Montgomery County, the Recorder of Deeds’ base fee is $87.75 to record a deed and $87.75 to record a mortgage, with added charges for more than four pages, more than four names or more than one parcel (fee chart effective June 25, 2026).
- Your share of the realty transfer tax. Whatever share your agreement of sale gives you.
- Prepaid items. Interest on your loan from the day you close to the end of that month. The CFPB says it’s also common to pay your first year’s homeowners insurance premium in advance at closing, and that lenders generally require proof that you have homeowners insurance.
- Your initial escrow deposit. If your lender pays your property taxes and insurance from an escrow account, you fund it at closing. Federal escrow rules, which cover federally related mortgage loans, let the servicer collect enough to cover the taxes and insurance that build up before your first monthly payment, plus a cushion of no more than one-sixth of the year’s estimated payments out of the account.
- Tax prorations. If the seller has already paid a tax bill that covers days after settlement, you pay the seller back for those days.
- Your buyer’s agent. Your written buyer agreement says what your agent is paid. Broker fees and commissions are fully negotiable and not set by law. The seller may agree to pay your agent, or to give you a credit toward your closing costs.
The deposit you paid under your agreement of sale counts toward what you owe. If you’re financing, your Closing Disclosure lists it as “Deposit.”
What does the seller cover?
- Its share of the transfer tax.
- Its mortgage payoff, any home equity line, and any liens or judgments that have to be paid off at settlement.
- What it owes under its listing agreement, plus any compensation it agreed to pay your agent and any credit it agreed to give you.
- Its side of the prorations: its share of any tax bill that’s unpaid for the days it owned the house.
- The resale certificate, if the home is a condominium or in a planned community with a homeowners association. When an owner resells (not a builder’s first sale, and not a foreclosure or another exempt transfer), Pennsylvania law puts the duty to furnish it on the seller, and the association has 10 days after the seller asks for it. You can cancel the purchase until five days after the certificate is provided to you, or until settlement if that comes first. A planned community of 12 or fewer units with no development rights is exempt unless its declaration says otherwise.
- Municipal resale requirements, where they apply. In Bridgeport, for example, any resale needs a Use and Occupancy Permit. The agreement of sale can say who pays for any repairs the municipality requires.
If you’re the seller, What It Costs to Sell a House in the Philadelphia Suburbs walks through each of your costs, and How to Estimate Your Net Proceeds When You Sell in the Philadelphia Suburbs shows how to turn them into a take-home number.
What does that look like on a $400,000 purchase?
Here’s an example. The price is only an example, not a prediction for any home.
Example: you buy a house in Bridgeport, Montgomery County, for $400,000, with a mortgage and the transfer tax split evenly.
| Your line | Amount, or where it comes from |
|---|---|
| Your share of the transfer tax: $400,000 × 2% = $8,000, half each | $4,000 |
| Recording the deed and the mortgage | $87.75 each in base fees, plus any page, name or parcel charges |
| Lender charges | Your Loan Estimate |
| Title insurance and settlement charges | Your Loan Estimate, then your settlement company |
| Prepaid interest and homeowners insurance | Your Loan Estimate |
| Initial escrow deposit | Your Loan Estimate |
| Tax prorations | The tax bills and your settlement date |
| Your buyer’s agent | Your written buyer agreement |
| Minus your deposit and any seller credit | Your agreement of sale |
If the same house were in Philadelphia, where the City lists the total rate as 4.578% (3.578% City plus 1% state), the transfer tax would be $400,000 × 4.578% = $18,312, or $9,156 each with an even split.
Only the transfer tax and the base recording fees work the same way for every $400,000 purchase in Bridgeport with an even split. Every other line depends on your loan, your agreements and your settlement date.
When do you see your real numbers?
Twice, if you’re financing your home with a consumer mortgage. Federal rules require your lender to deliver or mail your Loan Estimate no later than the third business day after it receives your application, and to make sure you receive your Closing Disclosure at least three business days before closing. These rules don’t apply to reverse mortgages or to loans made mainly for a business purpose. Compare the two, line by line, and ask your lender about anything that changed. We walk through those weeks in What Happens Between Accepting an Offer and Closing in Pennsylvania.
If you’re paying cash, there’s no Loan Estimate or Closing Disclosure. Your settlement company’s statement shows your costs.
Can the seller pay some of your closing costs?
Yes, if the seller agrees. A seller credit is written into the agreement of sale and shows on your Closing Disclosure as “Seller Credits,” the amount the seller has agreed to contribute to your closing costs. Your loan program can cap how much the seller may contribute, so ask your lender before you ask for a credit.
Frequently asked questions
Does the buyer or the seller pay the transfer tax in Pennsylvania?
Either can, or both. The agreement of sale sets the split, but the buyer and the seller each remain liable for the full tax. In Philadelphia, the City says it’s usually split evenly, but that isn’t a legal requirement.
Do I have to buy owner’s title insurance?
No. Your lender’s policy protects the lender. An owner’s policy protects you, and buying one is your choice. The CFPB says you can usually shop for your title insurance provider separately from your mortgage, and when you’re buying with a federally related mortgage loan, the seller can’t require you to buy title insurance from a particular title company as a condition of the sale.
When will I know my exact closing costs?
If you’re financing, your Closing Disclosure arrives at least three business days before closing. It lists your costs and the cash you need to bring. If anything changes, your lender has to give you a corrected Closing Disclosure at or before closing. If you’re paying cash, your settlement company’s statement shows your costs.
Does a cash buyer pay closing costs?
Yes, just fewer of them. A cash buyer has no lender charges, but still pays its share of the transfer tax, the fee to record the deed, its share of the settlement charges, any title insurance it buys, and its share of the tax prorations.
What will closing cost you?
The number to plan around is the cash you bring to closing, not just the price. If you’re buying or selling in Philadelphia or the Philadelphia suburbs, we’ll go over the costs on your side of the table, line by line, before you sign. If you’re selling, we’ll also build a net sheet for your house at more than one price. Any value range we give you is a broker price opinion, and a broker price opinion is not an appraisal. Contact Plus Realtors and tell us what you’re planning.