Settlement Fees
The fees paid to the title company or attorney handling the closing, including title services and recording.
Settlement fees are a subset of closing costs that go to the closing agent rather than the lender. They cover services like preparing the closing documents, conducting the closing meeting, performing the title search, issuing title insurance, recording the deed and mortgage with the county, and providing notary services.
Title-related fees often vary considerably between providers for the same coverage. In most states the buyer can choose their own title company even if the seller or agent suggests one, shopping these fees can save several hundred dollars.
Recording and transfer taxes are set by state and county and aren't negotiable. They typically show up as their own line items on the Closing Disclosure under government recording charges or transfer taxes.
Related terms
Other terms you'll see alongside Settlement Fees
The collection of fees and prepaid items, separate from the down payment, that a borrower pays at closing.
A policy that protects buyers and lenders against claims arising from defects in the property's chain of ownership.
The five-page final-numbers document a lender must deliver to the borrower at least three business days before closing.
A legal claim against property that secures a debt and must be paid off before clear title can transfer.
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