Who is primarily responsible for ensuring that closing costs are paid in a real estate transaction?

In a real estate transaction, the responsibility for paying closing costs primarily falls on the buyer, unless there has been a negotiated agreement that specifies otherwise. Closing costs typically include fees such as loan origination fees, title insurance, appraisal fees, and other related expenses that the buyer must pay upon the purchase of a property.

It is common for buyers to be responsible for these costs, as they are directly related to obtaining financing and finalizing the transaction. However, it is also common for buyers and sellers to negotiate the division of closing costs during the sale process, and this can be reflected in the purchase agreement. Therefore, while the buyer is typically responsible, the final decision may vary based on negotiations.

Understanding this allocation of costs is crucial for both buyers and sellers as it can impact their financial responsibilities and the overall cash flow involved in the closing process.