Who Pays Closing Costs When Selling a House in Maryland? (2026 Line-by-Line Breakdown)

The closing statement on a Maryland home sale has roughly 25 line items, and sellers regularly arrive at the closing table surprised by who paid for what. The short version: the seller pays the biggest costs (commission, transfer tax share, payoffs), but the buyer pays most of the small ones. The longer version is below — every line, who pays it by default, and which ones are actually negotiable.

This is the practical companion to the full cost of selling a house in Maryland. That post covers how much it costs. This one covers who pays it.

Quick answer: who pays closing costs when selling a house in Maryland?

In a standard 2026 Maryland transaction, the seller pays roughly 7–9% of the sale price at closing. The buyer pays a separate 2–4% of the sale price in their own closing costs. The breakdown by side:

The seller pays:

• Real estate commission (both agents' brokerages)
• Half of the state and county transfer taxes
• Mortgage payoff plus payoff fee
• Seller-side title and settlement fees
• Pro-rated property taxes through closing day
• Pro-rated HOA / condo dues through closing day
• Any agreed-upon buyer concessions
• Capital gains tax (after closing, if any)

The buyer pays:

• Loan origination, underwriting, and appraisal fees
• Half of the state transfer tax and the full recordation tax (typically)
• Buyer-side title insurance (owner's and lender's policies)
• Prepaid escrow (taxes and insurance reserves)
• Per diem mortgage interest from closing through month-end
• Their own home inspection (paid before closing, not at closing)

Most of this is default — meaning the contract can shift any line item to the other party if both sides agree. Below is exactly how each one works.

Real estate commission: the seller pays the full amount in 2026

The single biggest line on a Maryland seller's closing statement is the real estate commission.

Default in Montgomery County 2026: the seller pays a combined total commission of roughly 4.5%–6% of the sale price, which the title company then splits between the listing agent's brokerage and the buyer's agent's brokerage.

After the 2024 NAR settlement, this is technically negotiated more transparently, but the economic outcome hasn't changed for most deals — sellers still effectively pay both sides in 75–85% of MoCo listings.

Sample math on a $700,000 sale at 5.5% total commission: the seller pays $38,500. That's roughly $19,250 to the listing brokerage and $19,250 to the buyer's brokerage.

For the full breakdown of how this works post-settlement — and whether commission is negotiable — see how much does a realtor charge to sell a house in Maryland.

Maryland transfer and recordation taxes: who pays each one

Maryland layers four separate taxes on every home sale. The split is mostly governed by default rules, but the contract can shift them.

For the official rate schedule and exemption rules, see the Maryland State Department of Assessments and Taxation and the Montgomery County Department of Finance recordation tax page.

Maryland State Transfer Tax (0.5% of sale price)

• Default split: 50/50 between buyer and seller — so each pays 0.25%
• First-time buyer exemption: if the buyer is a first-time homebuyer, the buyer's half drops to 0.25% on the first $400,000; the seller's half stays at 0.25%
• Sample on $700,000: total tax $3,500 — seller pays $1,750

Maryland State Recordation Tax (0.5% of sale price)

• Default: typically paid by the buyer in Maryland
• Sample on $700,000: total tax $3,500 — seller pays $0 (buyer pays $3,500)
• Negotiable: in a buyer's market the seller sometimes covers part of this as a concession

Montgomery County Transfer Tax (1% of sale price)

• Default split: 50/50 — so each pays 0.5%
• Sample on $700,000: total tax $7,000 — seller pays $3,500

Montgomery County Recordation Tax (tiered, ~$6.90 per $1,000)

• Default: typically paid by the buyer
• Sample on $700,000: roughly $4,830 — seller pays $0

Total seller-side transfer tax burden on a $700,000 MoCo sale: ~$5,250 (~0.75% of sale price).

In Prince George's, Anne Arundel, and other Maryland counties the county percentages differ. For the full Montgomery County math including the first-time buyer rates, see Montgomery County transfer and recordation tax.

Mortgage payoff and payoff fees: 100% seller

Your existing mortgage gets paid off at closing using your sale proceeds. This is always the seller's responsibility.

What's on the seller's side:

• Principal balance — your current mortgage payoff
• Per diem interest — interest accrued from your last payment through the closing date
• Payoff processing fee — typically $30–$75, charged by your lender
• Recording fee for lien release — $30–$50

Two surprises sellers regularly hit:

1. Your payoff is higher than your statement balance. The mortgage payoff statement is good for a specific date (usually 14–30 days from request). Interest accrues daily until the lender receives the payoff wire, so the number creeps up.
2. HELOCs and second mortgages have their own payoff. If you have a home equity line of credit, it gets paid off separately, with its own payoff fee.

If you owe more than the sale price will net you (a short sale), the seller's responsibility doesn't go away — it just gets negotiated with the lender ahead of closing. Don't surprise yourself on closing day.

Title and settlement fees: split between buyer and seller

The settlement company runs the closing, handles document recording, and pays out the proceeds. Their fees split into seller-side and buyer-side items.

Seller-side title and settlement fees (typical $700K MoCo sale):

| Item | Cost | Who pays | |---|---|---| | Settlement / escrow fee (seller's share) | $400–$700 | Seller | | Title clearance / lien payoff coordination | $200–$400 | Seller | | Document preparation (deed) | $150–$300 | Seller | | Notary and recording fees | $50–$100 | Seller | | Wire transfer fees | $50–$100 | Seller | | Courier and overnight fees | $30–$75 | Seller | | Owner's title insurance | $0 | Buyer (in Maryland) | | Lender's title insurance | $0 | Buyer | | Total seller-side title/settlement | $880–$1,675 | |

Buyer-side title and settlement fees typically run $2,500–$4,500 on the same $700K sale — most of that being owner's and lender's title insurance, which are paid by the buyer in Maryland (unlike some other states where the seller pays for the owner's policy).

Settlement fees are technically negotiable but rarely renegotiated in practice — the splits are settled industry conventions and most title companies have a standard fee schedule for each side.

Pro-rated property taxes: seller pays through closing day

Maryland property taxes are paid in arrears (the bill covers the prior fiscal year). At closing, the seller pays their share of the current tax year up to the closing date, and the buyer takes responsibility from closing forward.

How it shows on the closing statement:

• If the seller has already paid the current tax bill, the buyer credits the seller for the portion of the year after closing
• If the seller has NOT paid the current tax bill, the seller credits the buyer for the portion of the year before closing

Sample on a $700,000 MoCo home with ~$7,500/year in property tax, closing on July 31:

• Seller has owned the home for 7 of 12 months of the fiscal year (July 1 start)
• Seller's share of the annual tax: $7,500 × (1/12) = $625 (for July only, since the fiscal year just started)
• This typically nets to a small credit one way or the other — usually $100–$1,500

For when MoCo property taxes are due and how they accrue, see when are Montgomery County real estate taxes due.

HOA and condo fees: pro-rated to the day

If your property has an HOA or condo association, the seller pays association dues through the closing day, and the buyer takes over from the day after.

Additional HOA-related charges the seller pays:

• HOA / condo resale package fee: $200–$700 — required by Maryland law; the association produces it for the buyer
• HOA dues through closing: pro-rated to the day
• HOA estoppel / certification letter: sometimes $50–$150
• Final assessment letter: confirms no special assessments are owed at closing

The buyer typically pays:

• HOA / condo association initiation or capital contribution fee: $200–$2,000 depending on the community
• First month or quarter of dues going forward

HOA fees are one of the most variable line items — a routine SFH community might cost the seller $300 total, while a luxury condo might cost the seller $1,200+ in resale package fees alone.

Buyer concessions: zero, some, or significant — depending on negotiation

A buyer concession is when the seller credits the buyer at closing to cover the buyer's closing costs, rate buydown, or repair allowance. It functions like a price reduction that happens at the closing table rather than the contract.

Who pays: the seller (it's deducted from sale proceeds).

Typical concession ranges in 2026 MoCo:

• $0 — common in hot listings, multiple-offer scenarios, and luxury homes
• $2,000–$5,000 — typical in balanced markets when the buyer asks for help with closing costs
• $5,000–$15,000 — common when the buyer is doing a permanent or temporary rate buydown
• $10,000+ — common when the inspection turns up real issues and the seller offers a credit in lieu of doing repairs

Concessions are pure negotiation. There's no default. Whatever's written into the ratified contract is what the seller pays.

Inspection-driven costs: usually the seller (when triggered)

The buyer pays for the home inspection upfront ($450–$800, paid before closing). But if the inspection finds material issues, what happens next typically costs the seller money — either as repair work or as a credit at closing.

Three options when issues surface:

1. Seller agrees to do the repairs before closing. Seller pays the contractor directly.
2. Seller offers a closing credit in lieu of repairs. Common — buyer takes the cash, does their own repairs. Cleaner for the seller because there's no warranty risk.
3. Seller refuses to do repairs or credit. Buyer either walks (if still in the inspection contingency window) or accepts as-is.

For the full play-by-play on what to do when inspection findings come back, see home inspection problems — what to do.

Capital gains tax: 100% seller (paid the next year, not at closing)

This one isn't on the closing statement, but it's still part of "what the seller pays."

If your gain on the home exceeds the federal exclusion ($250,000 single / $500,000 married filing jointly), you owe federal capital gains tax (15–20%) plus Maryland state and county income tax (5.75% state + your county's local add-on, ~3.2% in Montgomery) on the taxable portion. It's paid when you file your tax return the year after closing — not at the settlement table.

For the full math including the Section 121 exclusion and worked examples, see the Maryland capital gains real estate calculator and capital gains tax when selling your home in Maryland.

What does the buyer pay at closing in Maryland?

For balance — here's what the buyer covers on the same $700,000 MoCo sale (so you know what you're NOT paying):

| Item | Cost | Notes | |---|---|---| | Down payment | $35,000–$140,000 | 5–20% of price | | Loan origination + underwriting | $1,500–$3,500 | Lender-side | | Appraisal | $550–$800 | Required by lender | | Half of state transfer tax | $1,750 | Default split | | Full state recordation tax | $3,500 | Buyer pays (default) | | Half of county transfer tax | $3,500 | Default split | | Full county recordation tax | ~$4,830 | Buyer pays (default) | | Owner's title insurance | $1,200–$2,500 | Buyer pays in Maryland | | Lender's title insurance | $400–$1,000 | Buyer pays | | Prepaid escrow (taxes + insurance) | $4,000–$8,000 | 3–6 months reserves | | Per diem mortgage interest | $400–$1,200 | From closing through month-end | | First-year homeowners insurance | $1,500–$2,500 | Paid at closing |

Total buyer-side closing costs (excluding down payment): roughly $22,000–$32,000 on this sale, or 3–5% of the purchase price.

For the buyer-side perspective in detail, see who pays for what when buying a house in Maryland.

Can closing costs be negotiated to the other side?

Yes — and they regularly are. A few common patterns:

In a seller's market (low inventory, high demand):

• Buyer covers their full share of transfer taxes (no split)
• Buyer absorbs more of the title company's seller-side fees
• Buyer waives the appraisal contingency or pays the appraisal-gap cost
• Net effect: seller's closing costs go down, buyer's go up

In a buyer's market (high inventory, slow sales):

• Seller absorbs the buyer's half of transfer taxes
• Seller covers $5,000–$10,000 of buyer closing costs as a concession
• Seller offers a 2-1 rate buydown ($8,000–$15,000 cost) to lower the buyer's monthly payment
• Net effect: seller's closing costs go up, buyer's go down

In a balanced market (the 2026 MoCo norm right now):

• Default 50/50 splits hold for most line items
• Some negotiation on concessions ($0–$5,000 typical)
• No major shifts in transfer-tax responsibility

For when each side has leverage and how to negotiate accordingly, see when is the best time to sell in Montgomery County 2026.

Sample seller closing statement on a $700,000 MoCo sale

Putting it all together. Here's a typical seller's bottom-line statement in 2026:

| Item | Amount | Who pays | |---|---|---| | Sale price | $700,000 | | | Real estate commission (5.5%) | $38,500 | Seller | | State transfer tax (seller's half) | $1,750 | Seller | | County transfer tax (seller's half) | $3,500 | Seller | | Settlement / escrow fee | $500 | Seller | | Title clearance and doc prep | $400 | Seller | | Notary, wire, courier | $200 | Seller | | HOA resale package | $400 | Seller | | Pro-rated property tax | $250 | Seller | | Mortgage payoff (principal) | $310,000 | Seller | | Mortgage payoff fee + per diem interest | $1,200 | Seller | | Buyer concession | $5,000 | Seller | | Total seller-side costs | $361,700 | | | Net to seller (before tax) | $338,300 | |

Net as a percentage of sale price: 48% (with a $310K mortgage balance) — or stated differently, the seller netted 92% of the home's equity after sale costs.

What's the fastest way to estimate my own seller closing costs?

The rough-and-ready formula:

Seller-side closing costs ≈ Sale Price × 7.5%

Net cash to seller ≈ (Sale Price × 0.92) − Mortgage Payoff

That gets you within ~$2,000 of the actual closing-day number on most MoCo deals. For a precise estimate, ask your listing agent to prepare a seller net sheet for your specific address before you list — every competent listing agent will do this for free.

---

The bottom line

In Maryland in 2026, the seller pays the biggest costs at closing — commission, half of the state and county transfer taxes, the mortgage payoff, seller-side title fees, pro-rated taxes and HOA dues through closing day, and any negotiated buyer concessions. That typically totals 7–9% of the sale price.

The buyer pays their loan costs, half of the transfer tax, the full recordation tax, owner's and lender's title insurance, and prepaid escrow — roughly 2–4% of the purchase price in addition to their down payment.

Most line items are technically negotiable in the contract, but the defaults hold in roughly 80% of standard Maryland transactions. The big shifts happen in two scenarios: hot markets (buyers absorb more) and buyer's markets (sellers offer concessions to close the deal).

For the full dollar-amount breakdown of every line, see the real cost of selling a house in Maryland. For commission specifically, see how much does a realtor charge to sell a house in Maryland.

If you'd like a free seller net sheet for your specific Montgomery County address — line-by-line closing costs and exact net proceeds — call (301) 357-1170 or email [email protected]. I'll send you a one-page estimate within 24 hours.