Closing costs in Oregon: what buyers and sellers pay

Why there is no single “typical” total

Government bodies fix only some closing costs. The county sets the recording charges within limits set by statute, and the state requires title insurance rates and escrow rate schedules to be filed with it. Lenders, appraisers, inspectors and brokers set their own prices. Prorated property tax and insurance deposits depend on the house, the closing date and the loan.

Your total therefore depends mostly on your loan, your contract and the closing date. The federal forms show the variable parts. Your lender must give you a Loan Estimate “within three business days of receiving your application,” and the Closing Disclosure must reach you “at least three business days before you close” (Consumer Financial Protection Bureau, CFPB). For a walk-through of every line, see closing costs explained.

Line by line: what each cost is

Lender charges. Origination, appraisal, credit report and underwriting fees are set by the lender and the companies it hires. Oregon sets no rate table for them. Compare lenders on the standard Loan Estimate.

Title insurance. A title company insures that the seller can pass clear ownership. Oregon does not publish one premium table that every company must follow. State law requires title insurance filings to be reviewed by the Department of Consumer and Business Services (ORS 737.320) and says a rate may not be excessive, inadequate or unfairly discriminatory (ORS 737.310). Ask for a quote from each title company and compare. Our guide to title insurance explains the two policies.

Escrow fee. Closing is handled by an escrow agent. Oregon law requires an escrow agent to hold an active license from the Real Estate Commissioner (ORS 696.511). Banks, insurance companies and attorneys acting as attorneys are among the exceptions (ORS 696.520). A licensed escrow writer must file its rate schedule, including any discounts or surcharges, with the Division of Financial Regulation (DFR) before doing business. Fees therefore differ between companies, so ask for the schedule.

Recording fees. The county clerk records the deed and the deed of trust. State law sets the county’s charge at $5 per page (ORS 205.320) and adds fixed state amounts of $1, $10 and $60 per recorded instrument (ORS 205.323). Multnomah County publishes the result: $86 for the first page and $5 for each additional page for deeds and for mortgage documents such as deeds of trust. It charges $5 more for a cover page, and $5 more for a document that contains a second transaction.

Transfer tax. None at the state, county or Portland level. See transfer tax in Oregon.

Nonresident seller withholding. If a seller is not an Oregon resident, the escrow agent must withhold Oregon income tax from the proceeds unless an exception applies. The Oregon Department of Revenue (DOR) lists exceptions, including a price of $100,000 or less and the sale of a personal residence on which no federal income tax is owed (Publication OR-NR-REAL). The seller fills out Form OR-18-WC. This is withholding on account of tax, not an extra fee.

Prepaid taxes and insurance. The Oregon tax year runs from July 1 to June 30 (ORS 308.007). Bills are mailed by October 25, and the first third is due November 15 (ORS 311.250, 311.505). The purchase agreement decides how the current year’s tax is split between buyer and seller. If your lender requires deposits, they fund your escrow account. For rates and exemptions, see Oregon property tax.

Commission. Brokerage compensation is a separate cost that the listing and buyer agreements address. See real estate commission.

Who pays what in Oregon

None of the Oregon statutes read for this article says which side pays for the title policy, the escrow fee or the recording fees. The purchase agreement decides, and the parties may change it. Because the law is silent, read the cost sections of your agreement before you sign and ask your agent or your attorney how they apply. See when to hire an Oregon real estate attorney.