Closing costs in Massachusetts split along clear lines.
Buyers pay for
- The loan (lender charges and appraisal)
- Title insurance
- Their attorney
- Recording the deed and mortgage at the Registry of Deeds
- A set of prepaid items such as property taxes and homeowners insurance
Sellers pay
- The deed excise tax
- The cost of discharging their mortgage
- Their attorney
- The smoke and carbon monoxide certificate
- Any commission they agreed to
Below is each item, with official figures where the law sets one.
Buyer closing costs
| Item | What it is | Where the number comes from |
|---|---|---|
| Lender charges | Origination, points, underwriting and similar fees | Your Loan Estimate |
| Appraisal | The lender’s valuation of the property | Your Loan Estimate |
| Lender’s title insurance | Required by most lenders to protect the loan | Your Loan Estimate |
| Owner’s title insurance | Optional policy that protects you as owner | Quote from the closing attorney |
| Buyer’s attorney | Reviews the offer and Purchase and Sale agreement, represents you | Attorney’s quote |
| Recording fees | Recording your deed and mortgage at the Registry of Deeds | M.G.L. c. 262, § 38 and c. 44B, § 8 |
| Prepaid items and escrow | Prepaid interest, homeowners insurance, a starting escrow balance | Your Loan Estimate |
| Property tax adjustment | Reimbursing the seller for taxes paid past the closing date, or the reverse | Settlement statement |
| Condo fees (condos only) | Prorated common charges, and any 6(d) costs your Purchase and Sale agreement assigns to you | Association and settlement statement |
Registry of Deeds recording fees
The totals registries actually charge are a little higher than these two statutes add up to. The Middlesex South Registry, which says its fees include all applicable surcharges, posts $155 for a deed, $205 for a mortgage, $105 for a mortgage discharge and $35 for a homestead, and the Suffolk and Norfolk registries post the same amounts (Norfolk adds $1 for return postage on paper filings).
Title insurance and the attorney
Massachusetts closings are run by attorneys. With a mortgage, the lender often has its own closing attorney who certifies title and prepares loan documents. You can also hire your own attorney to represent you, which is separate from the lender’s attorney. Ask each for a fee quote in writing.
Seller closing costs
| Item | What it is | Official figure |
|---|---|---|
| Deed excise tax | State tax on the deed, paid at recording | $2.28 per $500 outside Barnstable County |
| Mortgage payoff and discharge | Paying off your loan and recording the discharge | $105 per discharge at the Suffolk, Middlesex South and Norfolk registries |
| Seller’s attorney | Prepares the deed and reviews the agreement | Attorney’s quote |
| Smoke and CO certificate | Fire department inspection required on sale | Capped by M.G.L. c. 148, § 10A |
| Title 5 inspection (septic only) | Required on sale of homes with on-site septic systems | Inspector’s quote |
| Broker commission | Whatever you agreed to in your listing agreement | Negotiable, not set by law |
| Condo 6(d) certificate | Statement of unpaid condo charges, due within 10 business days of a written request (M.G.L. c. 183A, § 6(d)) | “Reasonable fee” set by the association |
Deed excise tax
Sellers pay this when the deed is recorded. At $2.28 per $500, an $800,000 sale carries $3,648 in excise. Barnstable County adds its own county excise. See our full explanation of the deed excise tax for the math and exemptions.
Smoke and carbon monoxide certificate
Under § 10A, the fee for a smoke or CO inspection done separately is capped at $50 for a single-family home or single unit, $100 for a two-family and $150 for up to six units, and there is no extra fee when both inspections are done at the same visit.
Title 5 (homes with septic systems)
For a home with a private septic system, a Title 5 inspection is generally required when a property is sold. Timing and pass or fail rules are set by state regulation (310 CMR 15.000), so confirm the requirements with your attorney or the local board of health.
How to estimate your own costs
Estimating buyer costs
- Get a Loan Estimate. Federal rules require the lender to give you one within three business days of receiving your application. It itemizes loan charges, services you can and can’t shop for, taxes and government fees, and prepaid items.
- Compare several. The CFPB recommends comparing Loan Estimates from more than one lender, especially origination charges.
- Add what’s not on it. Your own attorney’s fee and any owner’s title policy may not appear.
- Check the Closing Disclosure. You’ll receive it at least three business days before closing. Compare the interest rate, loan amount, closing costs and cash to close against your latest Loan Estimate, and ask the lender about any change.
Sellers can estimate by starting from the sale price: subtract the deed excise, mortgage payoff, discharge recording, attorney fee, certificate fees and agreed commission. Your attorney prepares the actual settlement statement.
Boston’s residential exemption
If you buy in Boston and live in the home as your principal residence, you may qualify for the city’s residential exemption, which excludes part of your property’s value from taxation. Boston.gov sets out who qualifies and the filing deadline for each fiscal year, so check the City of Boston’s residential exemption page after closing. Other cities and towns may or may not offer one; state law makes it a local option (M.G.L. c. 59, § 5C).
Questions before you close?
Every figure above is a starting point, and your lender and attorney produce the final numbers. If you’re buying, The Pettengill Group can help you start a home search, and our first-time buyer guide walks through the steps. Selling? Begin with a free home valuation.