Illinois Customary Closing Costs

Buying a home is not as simple as negotiating a price with the seller

There are many other costs, including those associated with the loans, appraisals, and insurance. Some are one-time fees, while others recur over the life of the loan and it’s important to understand why.

Depending on where you live, there are customary practices for who pays what.

The SELLER usually pays for the following:  

  • Real estate commissions 
  • Owners Title insurance policy* 
  • Closing fee* 
  • Seller’s portion of sub-escrow fees (if applicable) 
  • Document preparation fee for deed(s) 
  • Notary fees 
  • County Recording fee 
  • State and County transfer tax 
  • Liens and encumbrances (if applicable) 
  • Any Judgements, tax liens, etc. (if applicable) 
  • Delinquent property taxes, (if applicable) 
  • Tax prorations (for any taxes unpaid at the time of transfer of title)  
  • Unpaid Homeowners Association (HOA) proration* 
  • Search fees 
  • E recording fees 
  • Closing protection letter for seller 
  • State Policy fee for Owner’s Policy 

The BUYER usually pays for the following: 

  • Mortgage Policy  
  • Closing fee 
  • Document preparation (if applicable) 
  • All new loan charges (except those the lender requires the seller to pay) 
  • E Recording fee 
  • Recording charges for all documents in buyers’ names 
  • Interest on new loan from date of funding to 30 days prior to first payment date 
  • Closing protection letter for lender and borrower 
  • State Policy fee 
  • Assumption/change of records fees for takeover of existing loan (if applicable) 
  • Beneficiary statement fee for assumption of existing loan (if applicable) 
  • Homeowners Association (HOA) proration*  
  • Homeowners Association (HOA) transfer fees* 
  • Inspection fees* 
  • Fire insurance premium for first year 

These items are most often negotiated with the purchase contact: 

  • Any city transfer or conveyance tax 
  • Home warranty 
  • Any bonds or assessments 

*Depend on individual contract negotiations

This article is part of the Home Buyer Guide.