The biggest closing costs typically paid by sellers in Massachusetts include:
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Title insurance: Protects the buyer and seller from financial losses due to title defects.
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Deed prep fee: Covers the cost of preparing the legal document that transfers ownership of the property from seller to buyer.
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Recording fees: Paid to the county clerk’s office to register the deed and other closing documents.
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Transfer taxes: Split between seller and buyer, these taxes are imposed by the state and municipality to fund government services.
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Prepaid interest: Paid to cover the interest on the mortgage loan from the closing date to the end of the month.
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Mortgage origination fee: Charged by the lender for processing and underwriting the mortgage loan application.
These costs can vary depending on the property value, lender requirements, and location.