The expenses related to the sale, or financing, of a property that must be paid in addition to the purchase price ( for a buyer ) or be deducted from the proceeds of the sale ( for the seller ).  Some closing costs result from legal requirements; others are a matter of local custom and practice. Sometimes the purchase contract will provide, through the specific terms included by the buyer or seller, that one of the parties will pay all closing costs. 

To avoid disputes, the contract should clearly define what items are to be included in "closing costs" and who will be responsible for their payment.  Typical, but not specific to all situations, expenses that might be incurred by the Seller and Buyer in an ordinary real estate transaction, include:

In addition to these closing costs, which are fixed at a specified amount or percentage regardless of the closing date, other expenses – i.e., real property taxes, prepaid insurance, interest on assumed obligations, etc – would be prorated between the seller and the buyer.  Because these expenses are directly related to property ownership, they are normally prorated as of the date on which title to the property passes, thus making the seller responsible for expenses for the period that they owned the property, and the buyer responsible for expenses accruing from the date they take title.  In many cases, the buyer assumes the expense as of the closing day.

Please note, there are special considerations and limits on these expenses, and who pays them, when VA or FHA financing is involved in the purchase.  Ask the realtor/real estate consultant representing you what these include.

As soon as a purchase offer has been accepted, your realtor/real estate consultant should provide you an "Estimated Cost Sheet" that will provide the estimated closing costs for the buyer or seller.  A final Closing Statement, showing all closing and adjustment costs along with how any prepaid and unpaid expenses are allocated between the Buyer and Seller, will be provided by the title company a few days prior to the Close Of Escrow.

Whether Buyer or Seller, you need to understand what your financial obligations are before signing any closing documents.  Ask the realtor/real estate consultant representing you for assistance or additional information to help you through this important step in the real estate transaction.