Who Pays Closing Costs in Texas, New York, Washington State, and Wisconsin?

Closing cost customs are hyperlocal. What sellers routinely pay in Texas is different from what sellers pay in New York. And even within a state like California, the convention in Alameda County differs from the convention in Broward — a county in Florida, not California, which illustrates how buyers can misapply state-level generalizations to their specific county. This post covers the states and counties where confusion is most common.

Texas: What Sellers Pay

The good news for sellers in Texas is that there is no state real estate transfer tax. Texas explicitly prohibits any state or local government from imposing a real estate transfer tax, which removes one of the largest closing cost line items sellers face in other states.

What sellers in Texas do pay:

• Real estate agent commission: The listing agent's fee, typically 2.5% to 3% of the sale price
• Owner's title insurance policy: In Texas, it is the seller's customary obligation to pay for the buyer's owner's title insurance policy. Title insurance rates in Texas are promulgated (set by the Texas Department of Insurance), so the cost is identical regardless of which title company you use.
• HOA transfer fees and estoppel letters: If the property is in a homeowners association, the seller pays for the account transfer and any required resale certificate or estoppel letter, usually $200 to $500.
• Property tax proration: Texas property taxes are paid in arrears, so the seller typically credits the buyer for the portion of the year they owned the home.

Buyers in Texas pay their own lender fees, lender's title insurance, recording fees, and prepaids. Because there is no transfer tax, total buyer closing costs in Texas (excluding prepaids) tend to be lower than in transfer-tax states.

New York: Who Pays What

New York has one of the most complex closing cost structures in the country, with meaningful obligations on both sides.

Sellers in New York pay:

• New York State transfer tax: $4 per $1,000 of sale price (0.4%). The seller is responsible.
• New York City transfer tax (NYC only): 1% of sale price for residential properties up to $499,999; 1.425% for residential properties $500,000 and above. Paid by the seller.
• Broker commission: Negotiated; listing agent fee typically 2.5% to 3%.
• Attorney fee: New York is an attorney state and both the buyer and seller hire their own attorney. Seller's attorney fees typically run $1,500 to $3,000.
• Flip tax (for co-ops): Many New York City co-ops charge a transfer fee of 1% to 3% of the sale price, paid by the seller.

Buyers in New York pay:

• Mortgage recording tax: This is the major buyer-side charge unique to New York. The rate varies by county. In New York City, the tax is 1.8% on mortgages below $500,000 and 1.925% on mortgages of $500,000 or more. The buyer pays this tax. On a $600,000 loan in NYC, the mortgage recording tax alone exceeds $11,500.
• Mansion tax: 1% of the purchase price on any residential property purchased for $1 million or more. Additional graduated surcharges apply above $2 million.
• Attorney fee: New York requires the buyer to have their own attorney; fees typically run $1,500 to $2,500 for a standard purchase.
• Title insurance: Buyers pay for the lender's title insurance policy. In many NYC transactions, buyers also purchase an owner's title insurance policy, though this is optional.

Washington State: The Seller's REET

Washington State's Real Estate Excise Tax (REET) is the seller's primary closing cost burden and has become one of the steeper transfer taxes in the country.

Current REET rates (graduated by sale price):

• 1.1% on the portion of the sale price up to $525,000
• 1.28% on the portion from $525,000 to $1.525 million
• 2.75% on the portion from $1.525 million to $3.025 million
• 3% on any portion above $3.025 million

On a $600,000 home sale, the REET is approximately $6,530. Some counties impose an additional 0.5% local REET on top.

Buyers in Washington State pay:

• Lender fees (origination, processing, appraisal)
• Title insurance (lender's and owner's policies)
• Recording fees for the new mortgage and deed
• Escrow fee (split 50/50 between buyer and seller is the common convention)
• Prepaids

Washington is not an attorney state. Closings are conducted by escrow companies, which keeps settlement fees relatively transparent and predictable.

Wisconsin: Modest Transfer Fees, Split Escrow

Wisconsin's transfer fee — technically called the Real Estate Transfer Return Fee — is assessed at $3 per $1,000 of the sale price (0.3%), paid by the seller. This is lower than many neighboring states.

Sellers in Wisconsin pay:

• Real estate transfer fee (0.3%)
• Real estate agent commission
• Their share of the settlement/title company fee

Buyers in Wisconsin pay:

• All lender origination and processing fees
• Lender's title insurance
• Recording fees for the mortgage
• Prepaids
• Settlement company fee (typically split with seller)

Wisconsin is not an attorney-required state for residential transactions.

California County Variations

Even within California, county-level customs vary significantly. A few specific counties that come up frequently:

Santa Clara County (Silicon Valley): In Santa Clara County, the seller typically pays the county transfer tax and the escrow company fee is split. For the owner's title insurance policy in the South Bay area, the buyer often pays — which differs from the Northern California convention where sellers tend to pay.

Alameda County (Oakland/East Bay): Oakland imposes a city-level transfer tax in addition to the Alameda County rate. The combined rate in Oakland for residential properties is approximately 1.5% to 2.5% depending on sale price. This is the seller's obligation. The escrow fee is typically split in Alameda County transactions.

Collier County and Broward County (Florida): These are Florida counties, not California. In Florida generally:

• The state documentary stamp tax is $0.70 per $100 of the sale price (0.7%), paid by the seller
• In Dade County (Miami-Dade), the rate is $0.60 per $100 plus the Miami-Dade surtax of $0.45, for a total of $1.05 per $100
• Broward and Collier counties follow the standard $0.70 per $100 rate
• The intangible tax on the mortgage ($0.002 per dollar of the mortgage amount) is paid by the buyer
• Title insurance premiums are promulgated (set by the state) in Florida

Commercial Real Estate Closing Costs

On commercial real estate, the question of who pays closing costs follows different conventions than residential:

• Transfer taxes still apply and are typically the seller's obligation
• Title insurance is customary and necessary, with the buyer paying the lender's policy
• Environmental assessments (Phase I, sometimes Phase II) are buyer costs in most transactions
• Survey costs fall to the buyer in commercial deals
• Broker commissions in commercial real estate are sometimes structured differently — the seller typically pays, but commission splits between buyer's and seller's brokers are negotiated independently

Commercial loan closing costs (appraisal, origination, legal fees) are significantly higher than residential — commercial loan closings routinely involve $5,000 to $20,000 in lender-related fees depending on loan size and complexity.

The Closing Cost Guide focuses on residential purchase transactions but includes reference tables for both buyer and seller closing cost obligations across the states covered in this post.