Closing costs in Virginia: what buyers and sellers pay

Why there is no single “typical” total

Some Virginia closing costs are set by law: recordation taxes, the grantor tax, regional fees and the clerk’s recording fees. Others are set by private companies and vary: lender charges, settlement fees, title insurance, inspections and surveys. Prorated property taxes and escrow deposits depend on the house and the closing date.

So your total depends mostly on the price, the loan and the contract. The fixed pieces can be calculated. The rest appears on two federal forms. The lender must give you a Loan Estimate within three business days of your application, and a Closing Disclosure at least three business days before closing (Consumer Financial Protection Bureau). All lenders use the same Loan Estimate form, so you can compare offers. For a general walk-through, see closing costs explained.

Line by line: what each cost is

Lender charges. Origination, appraisal, credit report, underwriting and document fees are set by the lender. Virginia law requires a lender to disclose any appraisal or automated valuation fee on the closing statement (Va. Code § 55.1-906). See also home appraisal cost.

Settlement agent. A settlement agent conducts the closing and disburses the money. The agent must record the deed and deed of trust and disburse the proceeds within two business days of settlement (§ 55.1-903). The agent’s fee is not set by statute in the sections I read. Our Virginia real estate attorney page covers who may act.

Title insurance. The State Corporation Commission says title insurers set their own rates and can negotiate them, and advises you to shop around. The owner’s policy is a one-time premium paid at closing, and the guide says coverage should be for the full value of the property, which is typically the sales price (SCC Title Insurance Guide). Before disbursing funds, the settlement agent must get your written statement that you were told owner’s coverage is available and whether you want it (§ 38.2-4616). I found no state-set premium table, so this guide gives no premium. See title insurance explained.

Recordation taxes. The state taxes the deed and the deed of trust at 25 cents per $100, and Arlington County adds one-third of that. See Virginia transfer tax.

Grantor tax and regional fees. The seller owes the grantor tax (50 cents per $500) and, in Northern Virginia, two fees of 10 cents per $100 each, unless the parties agree that the buyer pays (§§ 58.1-802, 58.1-802.3, 58.1-802.4).

Clerk’s recording fees. The circuit court clerk charges $18 to record and index a document of 10 or fewer pages, $32 for 11 to 30 pages and $52 for 31 or more (§ 17.1-275). A Technology Trust Fund fee of $8 applies to each instrument recorded in the deed books (§ 17.1-279). A $3 open-space fee applies in jurisdictions where the Virginia Outdoors Foundation holds open-space easements (§ 58.1-817). Clerks may list other line items, so Arlington’s Circuit Court points filers to its deed calculator for the exact total.

Survey, inspection, brokerage. These are private and negotiable. See land survey cost, home inspection cost and real estate commission.

Prepaids and prorations. Property tax and insurance deposits fund your escrow account. The amounts depend on your tax bill; see Virginia property tax.

Who pays what in Virginia