Utah real estate closing costs typically range from 2% to 5% of the purchase price for buyers and 6% to 10% for sellers (including real estate commissions). These costs include title insurance, escrow fees, recording fees, transfer taxes, lender fees, and pro-rated property taxes. Knowing who pays what helps you budget for your transaction.
Last updated: July 2026
Key Takeaways
- Buyer closing costs in Utah typically range from 2% to 5% of the purchase price, including lender fees, title insurance, and escrow charges.
- Seller closing costs are higher, usually 6% to 10%, because sellers typically pay real estate commissions.
- The Utah REPC specifies which party pays for each closing cost item, but many terms are negotiable.
- Utah charges a transfer tax of $1.65 per $1,000 of the purchase price, collected at recording.
- Review the Closing Disclosure form at least three days before closing to verify all fees and charges.
Closing costs are the fees and expenses paid to complete a real estate transaction. Both buyers and sellers pay closing costs, but the types and amounts differ significantly. Buyers pay for lender-related costs and title insurance. Sellers pay for commission and transfer taxes. The specific allocation of each cost is negotiable and should be spelled out in the purchase contract.
The Consumer Financial Protection Bureau requires lenders to provide buyers with a Loan Estimate within three days of application and a Closing Disclosure at least three business days before closing. These forms itemize all closing costs and allow buyers to compare actual charges to the initial estimate. Any significant changes require a new three-day review period, which can delay closing.
What closing costs do buyers pay in Utah?
Utah home buyers pay closing costs that include lender fees, title insurance, escrow fees, recording fees, prepaid items, and sometimes a portion of the transfer tax. The total typically ranges from 2% to 5% of the loan amount. On a $400,000 home purchase with a $320,000 loan, buyer closing costs may range from $6,400 to $16,000.
Lender fees include the loan origination fee, application fee, underwriting fee, processing fee, and appraisal fee. Some lenders charge a flat origination fee (typically 0.5% to 1% of the loan amount), while others bundle costs into a higher interest rate. Borrowers should compare both fees and interest rates when shopping for a mortgage.
Title insurance is one of the largest buyer closing costs. Lenders require the buyer to purchase a lender’s title insurance policy that protects the lender’s interest in the property. The cost is based on the loan amount and is set by Utah law. Buyers can also purchase an owner’s title insurance policy to protect their own interest. Many attorneys recommend owner’s coverage because it protects against title defects that may not be apparent at closing.
| Buyer Closing Cost | Typical Amount | Paid By |
|---|---|---|
| Loan origination fee | 0.5% – 1% of loan | Buyer |
| Appraisal fee | $400 – $700 | Buyer |
| Credit report fee | $30 – $50 | Buyer |
| Lender’s title insurance | $150 – $600+ | Buyer (typical) |
| Owner’s title insurance | $300 – $1,000+ | Buyer (optional) |
| Escrow fee | $300 – $600 | Split or negotiated |
| Recording fees | $50 – $150 | Buyer |
| Property tax pro-ration | Varies | Buyer reimburses seller |
| Prepaid interest | Varies | Buyer |
| Homeowners insurance (first year) | $500 – $2,000 | Buyer |
What closing costs do sellers pay in Utah?
Sellers pay the largest closing cost item: the real estate commission. The typical total commission in Utah is 5% to 6% of the sale price, split between the listing agent and the buyer’s agent. On a $400,000 home, the commission alone is $20,000 to $24,000.
Beyond commission, sellers pay the Utah transfer tax (also called a recording fee or documentary transfer tax). The tax is $1.65 per $1,000 of the purchase price. On a $400,000 sale, the transfer tax is $660. The party responsible for this tax is negotiable, but it is typically paid by the seller under the standard REPC.
Sellers may also pay for the owner’s title insurance policy if required by the contract, a portion of the escrow fee, any mortgage payoff fees (including prepayment penalties if applicable), and attorney fees if they have legal representation. Sellers should also budget for home repairs or credits negotiated during the inspection period.
How are property taxes pro-rated at closing in Utah?
Property taxes in Utah are paid in arrears, meaning the current year’s taxes are paid at the end of the year. At closing, the seller credits the buyer for the portion of the tax year the seller owned the property. The buyer then pays the full tax bill when it comes due.
The pro-ration calculation is based on the number of days each party owned the property during the tax year. The Utah State Tax Commission sets property tax rates, which vary by county. The closing agent calculates the pro-ration using the most recent tax information available. If the exact tax amount is not yet known, the parties may agree to a re-pro-ration after the final tax bill is issued.
Buyers should verify that property taxes are not delinquent before closing. A title search will reveal any unpaid taxes, and the seller must pay them before or at closing. Unpaid property taxes become a lien on the property, and the buyer would inherit the liability if not resolved at closing.
Are Utah closing costs negotiable?
Yes. Many closing cost items are negotiable between buyer and seller. The Utah REPC includes blank spaces where the parties can specify who pays each cost. Common negotiated terms include the seller paying a portion of the buyer’s closing costs (often called a seller concession) or the buyer paying the transfer tax.
Seller concessions are common in Utah, especially in slower markets. The seller agrees to pay up to a certain amount of the buyer’s closing costs, typically 3% to 6% of the purchase price. This reduces the buyer’s out-of-pocket expenses at closing. However, the lender may limit the amount of seller concessions based on the loan type. FHA loans allow up to 6%, while conventional loans typically allow 3% to 9% depending on the down payment.
Buyers can also negotiate with lenders by comparing Loan Estimates from multiple lenders. Some fees, such as the application fee, processing fee, and underwriting fee, vary significantly between lenders. Shopping around can save hundreds or thousands of dollars.
What is the Closing Disclosure and why does it matter?
The Closing Disclosure is a five-page form that itemizes all closing costs and loan terms. Federal law requires the lender to provide it at least three business days before closing. The buyer should review every line carefully and compare the final charges to the Loan Estimate received at application.
If any closing cost changes by more than a certain threshold, a new three-day review period may be triggered. This can delay closing. Changes that trigger a new review include the APR increasing by more than 0.125%, the loan product changing, or a prepayment penalty being added. Buyers should ask their lender about any changes as soon as they appear on the Closing Disclosure.
Frequently Asked Questions
What is the Utah transfer tax rate?
The Utah transfer tax rate is $1.65 per $1,000 of the purchase price. Some counties and municipalities add additional transfer taxes. The tax is typically paid by the seller.
Can I roll closing costs into my loan in Utah?
Some closing costs can be financed as part of your mortgage, but this increases the loan amount and monthly payment. Lender fees and prepaid items typically cannot be rolled in. Seller concessions are the most common way to reduce out-of-pocket closing costs.
Does Utah require an attorney at closing?
No. Utah does not require an attorney to be present at closing. Title companies handle most residential closings. However, having an attorney review documents before closing is always an option.
What is the difference between escrow and title fees?
Escrow fees cover the cost of the neutral third party who handles the funds and documents during the transaction. Title fees cover the title search and title insurance policy. Both are typically handled by the title company in Utah.
Do I pay closing costs if I refinance in Utah?
Yes. A refinance involves many of the same closing costs as a purchase, including lender fees, appraisal, and title insurance. Some lenders offer “no-cost” refinances by rolling the costs into a higher interest rate.
How can I estimate my closing costs in Utah?
Ask your lender for a Loan Estimate. You can also use online calculators by entering the purchase price, loan amount, and zip code. The estimate will include reasonable approximations of all common fees.
Are homeowners association fees prorated at closing?
Yes. HOA fees are typically paid in advance, so the seller receives a credit for any prepaid fees that extend beyond the closing date. The buyer reimburses the seller for the portion of the fee that covers the period after closing.
What happens if I cannot pay my closing costs in Utah?
If you cannot pay your closing costs, the transaction cannot close. You may be in breach of contract. Options include negotiating a seller concession, using gift funds from a family member, or choosing a different loan program with lower upfront costs.
Need Legal Help With Your Real Estate Matter in Utah?
Closing costs can be confusing, and mistakes can cost you thousands. An experienced Utah real estate attorney can review your Closing Disclosure, explain your obligations, and ensure your interests are protected throughout the transaction. Do not let unexpected fees derail your home purchase or sale.
Need help with your real estate legal matter in Utah? Attorney Jeremy Eveland has the experience to guide you through Utah real estate law.
Call (801) 613-1472 to speak with Jeremy Eveland today.
This article is for informational purposes only and does not constitute legal advice. Consult with a qualified Utah real estate attorney for advice specific to your situation.
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