Buying or selling in Merion Station and trying to pin down “the number” you will pay at the closing table? You are not alone. Closing costs can feel vague until you see a line-by-line estimate. In this guide, you will learn what closing costs are, who typically pays what in Pennsylvania, what is customary in Lower Merion, and exactly where to confirm your figures. Let’s dive in.
Closing costs, defined
Closing costs are the third-party and transactional fees needed to complete a real estate sale beyond the purchase price. They include lender charges, title services, transfer and recording taxes, prorations for property taxes and utilities, and any HOA or condo-related fees.
Your total depends on price, loan type, negotiated credits, title company or attorney fees, and local tax rates. Ask for written estimates early: your lender provides a Loan Estimate, and your title company or settlement attorney prepares a Closing Disclosure before closing. The Consumer Financial Protection Bureau explains these forms clearly on its website at the same time you review your numbers at closing. You can explore those explanations on the Consumer Financial Protection Bureau’s resources for mortgage disclosures.
Who pays what in PA
Pennsylvania practice is flexible, and many costs are negotiable. Regional custom in the Philadelphia suburbs, including Lower Merion, often splits transfer taxes between buyer and seller, but that is not a rule. Your contract controls who pays which items.
Always confirm local practice and your specific allocation with your settlement agent, title company, or attorney. Expect your final Closing Disclosure to reflect those choices.
Buyer closing costs
Here are the buyer items you will commonly see in Merion Station. Exact amounts vary by lender, title company, and contract.
- Lender fees and third-party loan costs. Origination or underwriting, application or processing, credit report, flood certification, and the appraisal are typical buyer charges. Your lender will issue a Loan Estimate within three business days of your application.
- Title insurance. A lender’s policy is required when you finance. Many buyers also choose an owner’s policy for protection. Costs are based on published rate schedules and purchase price; ask your title company for a written quote.
- Settlement or closing fee. The title company or attorney charges a fee to conduct settlement and prepare documents. In some transactions this is split; in others one party pays it. Confirm for your deal.
- Recording fees. Deeds and mortgages are recorded with the Montgomery County Recorder of Deeds; fees depend on document type and page count. Check current fees with the Recorder of Deeds listed on the Montgomery County site.
- Transfer tax share. Your contract assigns how the state, county, and local transfer taxes are split. In many local deals this is a 50/50 split, but confirm the agreed share for your contract.
- Prepaid items and escrows. Lenders commonly require an upfront deposit into escrow for property taxes and homeowners insurance. The number of months collected varies by lender.
- Property tax proration. Taxes are prorated based on the closing date and local billing cycles. You may reimburse the seller for taxes that cover your ownership period.
- HOA/condo items. If applicable, budget for prorated dues and any transfer, move-in, or application fees required by the association.
Seller closing costs
If you are selling in Merion Station, plan for these common items. The exact list and amounts follow your listing agreement and purchase contract.
- Real estate commissions. Commissions are negotiated in your listing agreement and paid by the seller at closing.
- Title search and settlement fee. If the seller is responsible per the contract, you may see a charge for the title search or a seller-side closing fee.
- Owner’s title insurance. In many area transactions, the seller often pays for the owner’s policy as a customary concession. This is negotiable.
- Transfer tax share. Transfer taxes are often split locally, but your contract controls. Confirm your share with your title company.
- Mortgage and lien payoffs. Any mortgages, lines of credit, or liens are paid off at closing. Check for any prepayment penalties with your lender.
- Municipal and utility prorations. Sellers typically pay these through the settlement date. Any credits or reimbursements will appear on your statement.
- Title clearance items. Costs to clear title issues, such as recording releases or resolving municipal violations, may appear and are negotiable.
Merion specifics to verify
Transfer tax in Lower Merion
The total transfer tax is a combination of the Pennsylvania state realty transfer tax and any county or municipal add-ons. In many Lower Merion transactions, buyers and sellers split the total tax, often 50/50, by custom. Always verify the applicable rate and the agreed split with your title company and local offices, including the Pennsylvania Department of Revenue for state guidance, the Montgomery County Recorder of Deeds, and the Lower Merion Township tax office.
- Review statewide rules on the Pennsylvania Department of Revenue site.
- Confirm local recording and transfer details with the Montgomery County site.
- Check township contacts and any local requirements on the Lower Merion Township site.
Recording in Montgomery County
Your deed and mortgage are recorded with the Montgomery County Recorder of Deeds. Recording fees are set by the county and vary by document type and page count. Ask your title company for an estimate and confirm the current fee schedule with the county’s Recorder of Deeds page on the Montgomery County site.
Property tax proration and school timing
Lower Merion assesses property taxes through both the township and the school district. Proration at closing is standard. Tax billing cycles and whether taxes are paid in advance or in arrears affect both proration and any escrow your lender requires. Request recent tax bills and verify billing cycles with the township and county tax contacts on the Montgomery County site and the Lower Merion Township site.
HOA, condo, and municipal certificates
Many Merion Station homes are in HOAs or condominium associations. Plan ahead for potential transfer or application fees and the cost and timing of any resale certificates. Lower Merion may also require municipal certificates for certain transfers; confirm requirements with the township.
Attorneys and title companies
In Pennsylvania, licensed title companies commonly handle settlement. Some buyers also hire a real estate attorney to review documents. If you choose counsel, attorney fees will appear on your settlement statement.
How much to budget
Buyers often bring closing costs, excluding any down payment, that total about 2 to 5 percent of the purchase price. This range can be lower or higher depending on loan type, lender credits, and taxes. Sellers should estimate net proceeds as the sale price minus mortgage payoffs, commissions, transfer taxes as negotiated, and any seller-paid fees.
For exact numbers, rely on your lender’s Loan Estimate and the title company’s Closing Disclosure. The Consumer Financial Protection Bureau provides helpful explanations of both forms so you can compare estimates to your final figures.
Printable checklist and worksheet
Use this checklist to organize documents and budget line items. Fill in amounts with your lender and title company.
Before your offer is accepted
After you are under contract (buyer)
Buyer closing cost worksheet
- Purchase price: $________
- Down payment: $________
- Loan origination/underwriting fee: $________
- Appraisal fee: $________
- Credit report/security fees: $________
- Lender title policy fee: $________
- Owner’s title policy (estimated): $________
- Settlement/closing fee (title company/attorney): $________
- Recording fees (deed, mortgage): $________
- Transfer tax (buyer share): $________
- Prepaid taxes/insurance escrow (initial deposit): $________
- HOA/condo transfer or proration: $________
- Other: $________
- Estimated total cash to close, excluding down payment: $________
Seller closing cost worksheet
- Purchase price: $________
- Mortgage payoff(s): $________
- Real estate commission(s): $________
- Owner’s title policy (if seller pays): $________
- Transfer tax (seller share): $________
- Settlement/attorney fee (seller): $________
- Prorated taxes/utilities/HOA dues: $________
- Repairs/escrow holdbacks (if negotiated): $________
- Other: $________
- Estimated net to seller at closing: $________
Final steps before closing
Next steps and trusted resources
Your exact closing costs are unique to your contract and loan. Get written estimates from your lender and your title company, then verify local taxes and fees through these official sources:
- Pennsylvania Department of Revenue for realty transfer tax guidance: visit the Pennsylvania Department of Revenue site.
- Montgomery County Recorder of Deeds for recording fees and instructions: visit the Montgomery County site.
- Lower Merion Township for tax office contacts and any local transfer requirements: visit the Lower Merion Township site.
- Consumer Financial Protection Bureau for clear Loan Estimate and Closing Disclosure explanations: visit the Consumer Financial Protection Bureau.
- Pennsylvania Association of Realtors for regional consumer resources: visit the Pennsylvania Association of Realtors.
If you want local, line-by-line guidance tailored to your property and timing, reach out. As a Main Line advisor focused on clarity and results, I will help you compare estimates, confirm local customs, and avoid surprises at the table. Connect with Jordan Arnold to get started.
FAQs
In Merion Station, what counts as buyer closing costs?
- Buyer costs often include lender fees, appraisal, title insurance, settlement fee, recording fees, a share of transfer tax per the contract, prepaid escrows, tax proration, and any HOA/condo fees.
How are realty transfer taxes typically split in Lower Merion?
- Many local transactions split total transfer taxes 50/50 by custom, but the contract controls; verify the rate and split with your title company, the Montgomery County Recorder of Deeds, and the Lower Merion Township tax office.
Where do I find Montgomery County recording fees for deeds and mortgages?
- Recording fees are set by the county and can be confirmed with the Recorder of Deeds on the Montgomery County site; ask your title company for a current estimate too.
Do lenders require escrow accounts for taxes and insurance in Merion Station?
- Lenders commonly require escrow accounts and an initial deposit at closing; exact amounts vary by lender, so ask for their escrow calculation in writing.
Who typically pays for the owner’s title insurance policy in Lower Merion?
- The owner’s policy is negotiable; in many area transactions the seller often pays it as a customary concession, but confirm your contract’s allocation with your settlement agent.
