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Understanding Recurring and Non-recurring Closing Costs

There are two types of costs or expenses in an escrow: the recurring costs and the non-recurring costs. This chart will define and give examples of both types.

Recurring Costs

Costs which the party pays at closing but will continue to occur or be repeated after the escrow close as a cost of maintaining the property.

  • Fire Insurance Premium
  • Homeowner’s Association Dues
  • Real Property Taxes
  • Interest on the New Loan

Non-Recurring Costs

Costs which are charged ONE TIME ONLY as an expense of closing the transaction.

Title and Escrow Expenses Such As:

  • Title Insurance Premiums
  • Recording Fees
  • Endorsements to Title Policies
  • Sub-Escrow Fee, which may be due to the Title Company
  • Reconveyance Fees
  • Documentary Transfer Tax
  • Escrow Fees
  • Notary Fees
  • Messenger Fees

In the case of a refinance:

  • Fees Associated With Making an Existing Loan Payoff
  • Transfer or Document Fees to a Homeowner’s Association

Lender’s Costs such as:

  • Appraisal
  • Credit Report
  • Loan Origination
  • Loan Processing
  • Document Fees
  • Tax Service Contract

In the case of a sale:

  • Real Estate Broker Commissions
  • Fees for Property Disclosures or City Reports
  • Transaction Coordinator Fee
  • Home Warranty Premium