Closing Costs

Closing costs are a term used to define what the Buyer and Seller will need to close the sale. 

It becomes a little confusing when the contract refers to those costs to be split one half by the Buyer and one half by the Seller. You will find this in section 15 of the Colorado Approved Contract to Buy and Sell Real Estate. Section 15.2 refers to the Closing Services Fee which is generally around $300 for the title company to actually close the sale. 

Because of the word "closing" being used a lot to define the Buyer's cost to buy a home, the Seller often times thinks they are being asked to pay one half of all the Buyer's fees which can be upward of $5,000. This is not true. When you agree to pay one half of the Closing Services Fee in that section, you are agreeing only pay one half of the $300 fee, or whatever the fee is that title company charges. 

If you are being asked to contribute to some of the Buyer's lender fees to purchase the home, that is known as Seller Concession that you will find in section 4.2 of the Colorado Approved Contract to Buy and Sell Real Estate.