In a real estate closing, what expense is typically paid by the buyer?

In a real estate closing, the expense that is typically paid by the buyer is the recording of a new loan. This is an essential step in the process of finalizing the transaction, as it ensures that the new mortgage is officially documented with the local government, giving public notice of the buyer's new financial obligation. Recording the loan protects the lender's interest in the property and is a standard part of closing costs that the buyer usually covers.

Other expenses related to closing can vary depending on negotiations and local customs. For example, deed preparation and real estate commissions are often responsibilities of the seller, while the release of old liens is typically managed by the seller to clear title. Thus, while there are many costs associated with closing a real estate transaction, the recording of a new loan is a direct expense that typically falls to the buyer.