Buyer's costs

Buyer's costs are the transaction-related and ancillary expenses that a purchaser of real estate must settle beyond the negotiated purchase price. These costs are separate from the acquisition sum itself.

Typical buyer's costs include:

• Transfer tax or acquisition tax
• Notary fees for deed execution and registration
• Agent commission (if not borne by the seller)
• Valuation and appraisal fees
• Mortgage costs and arrangement fees
• Insurance and registration charges

In commercial real estate transactions, these costs can be substantial and should be factored into the financial due diligence before acquisition.