Closing costs

This point in time called the closing is when the title to the property is conveyed (transferred) to the buyer.

Closing costs are incurred by either the buyer or the seller.

In the United States, federal law requires that all residential transactions financed by a mortgage have all closing costs documented in detail upon the standard HUD-1 form.

Instead a declaration or statement by buyer and/or seller is often required to be provided to the government office recording the deed.

Form 1099-S may be required to be sent to the United States Internal Revenue Service, but Federal law does not allow a charge for this.