Who is typically debited for closing costs on behalf of the buyer?

In a real estate transaction, the buyer is typically debited for closing costs because these costs are directly associated with the purchase transaction and are the responsibility of the buyer as they complete the acquisition of the property. Closing costs can include various fees such as loan origination fees, appraisal fees, title insurance, and recording fees, among others.

These costs are necessary for the processing of the sale and are incurred as part of the financial obligations assumed by the buyer when they enter into a purchase agreement. The seller, while they may pay certain closing costs as negotiated in the sale, generally does not assume the entirety of the buyer's closing costs. Similarly, the closing broker facilitates the transaction but does not pay these costs on behalf of the buyer. Lastly, the lender might charge certain fees, but these are passed on to the buyer, again emphasizing the buyer's responsibility for closing costs. Hence, it is the buyer who is typically debited for these expenses in the closing process.