Closing on a home is one of the largest financial transactions most people make in their lives. The closing disclosure you receive three days before closing is full of line items — attorney fees, title insurance, recording fees, transfer taxes, lender fees — that can collectively add $5,000–$25,000 to the cost of the purchase. Most buyers sign without fully understanding what each item covers or whether some are negotiable.
In attorney-closing states — New York, New Jersey, Massachusetts, Illinois, Georgia, and others — an attorney is either required or standard practice. In title-company states like California, Texas, and Florida, attorneys are optional but increasingly common for buyers who want legal review.
What you're paying for: contract review before you sign, title examination, clearing any title defects, reviewing the closing disclosure for errors, attending the closing, and ensuring the deed is properly recorded. Attorney fees for a standard residential closing: $750–$1,500 in most markets, with higher-cost cities running $1,500–$3,000. These are flat fees in most cases — get this in writing and confirm what's included.
There are two title insurance policies at closing. The lender's title policy protects the bank — not you. The owner's title policy protects you against defects in title discovered after closing: unrecorded liens, forged deeds, errors in public records, unknown heirs.
Owner's title insurance is priced as a percentage of the purchase price, typically 0.5–1%. On a $400,000 home, that's $2,000–$4,000, paid once at closing, covering you for as long as you own the property.
Real estate transfer taxes vary enormously by state and city. New York City buyers pay a city transfer tax of 1–1.425% plus state transfer tax of 0.4–0.65% — on a $1,000,000 purchase, that's $15,000–$20,000 in taxes alone. Texas has no transfer taxes. Knowing your jurisdiction's transfer tax rate before making an offer is essential.
If you're purchasing a property in Washington DC with existing tenants, the Tenant Opportunity to Purchase Act gives those tenants the right to match your offer. This can add 30–90 days and $2,000–$5,000 in additional legal costs to any DC transaction.
For what real estate attorneys charge in your market, see our city guides for New York, Los Angeles, Chicago, and Washington DC.