Closing costs in Tennessee: what buyers and sellers pay

Why there is no single “typical” total

Government bodies fix only some closing costs: state recordation taxes (Department of Revenue) and county recording fees (set under Tenn. Code Ann. § 8-21-1001, per the Register of Deeds). Lender charges, title insurance, escrow or closing fees, surveys, inspections and brokerage compensation come from private providers. Prorated taxes and deposits depend on the house, the date and the loan.

Two federal forms show the variable lines. The Loan Estimate must reach you within three business days of your application, and the Closing Disclosure three business days before closing (Consumer Financial Protection Bureau). See closing costs explained.

Line by line: what each cost is

Transfer tax. The buyer, as grantee on the deed, owes $0.37 per $100 of the greater of price or value, paid to the county Register of Deeds. Details are on our transfer tax page.

Mortgage tax. The borrower owes $0.115 per $100 of principal, with the first $2,000 exempt, paid when the deed of trust is recorded.

Recording fees. The Davidson County Register of Deeds lists $5 per page, a $10 minimum and a $2 data-processing fee for deeds and deeds of trust, plus a $1 probate fee collected when state tax is paid (page last updated August 2021; confirm before closing).

Lender charges. Origination, appraisal, credit report and underwriting are set by the lender. No Tennessee schedule applies; compare lenders on the standard Loan Estimate. See what an appraisal costs.

Title insurance. I did not find a Tennessee state rate table in the official sources read, so premiums are not stated here. Ask the title company for a written quote and see title insurance explained.

Attorney or title company fees. Tennessee’s Register of Deeds says it cannot prepare a deed and that a title search is “usually done by an attorney or title company.” See Tennessee real estate attorney.

Survey and inspection. The Register notes that only a private surveyor can mark lot lines. See land survey cost and home inspection cost.

Prorations and prepaids. Davidson County property tax covers the calendar year and is due from the first Monday of October. The Trustee says to review your closing statement to see who owes the tax when a property transfers. If a lender collects taxes and insurance monthly, see escrow account and Tennessee property tax.

Brokerage compensation. Set by agreement; see real estate commission.

Who pays what in Tennessee?

By law, the Department of Revenue assigns the transfer tax to the buyer and the mortgage tax to the borrower. The sources read do not set a default for other lines; they follow your purchase contract and loan terms. Seller costs generally come from the contract, such as releasing the existing loan and any commission.