What Closing Costs Do Sellers Pay in Utah? (And Which Ones a Cash Buyer Covers)

Settled & Sold Home Buyers · Utah seller guide

When you sell a house, the sale price is not what lands in your bank account. Closing costs, payoffs and prorations come out first. Knowing which costs are typical in Utah helps you compare offers and avoid surprises. Here is a general guide. Your title company will prepare the actual settlement statement for your sale.

What Utah's standard contract says

Most Utah home sales that involve agents use the state-approved Real Estate Purchase Contract (REPC). A few of its default terms shape seller costs:

• Title insurance: the seller agrees to pay for the buyer's owner's (homeowner's) title insurance policy.
• Escrow fees: unless otherwise agreed, buyer and seller each pay their own escrow/closing fees charged by the title company.
• Prorations: property taxes for the current year, HOA dues and rents are prorated as of settlement unless agreed otherwise.
• Deposits: tenant security deposits and prepaid rents are credited from seller to buyer.
• Special assessments and HOA transfer fees: the contract has checkboxes for who pays, so these are negotiated.
• Buyer's agent compensation: the form includes a place to state any seller contribution, which is negotiated.

Investors often use their own contracts, and every term is negotiable, so read the specific offer in front of you.

Common seller costs in Utah

Mortgage payoff

Your remaining loan balance, plus interest through the payoff date and any fees. This is usually the largest deduction. Home equity loans and lines of credit are paid off too.

Agent commissions

If you list with an agent, the listing commission is typically the biggest cost after the mortgage. Commissions are negotiable. Since 2024 industry changes, how a buyer's agent is paid is negotiated more explicitly, and the seller may or may not contribute. Selling directly to a buyer without agents means no commission.

Owner's title insurance

Under the standard REPC, the seller pays for the buyer's owner's policy. The premium depends on the price and the title company's rates.

Escrow or settlement fee

The title company's fee for handling the closing. Under the REPC default, each side pays its own.

Property tax proration

Utah property taxes are billed once a year for the calendar year. At closing, the seller typically credits the buyer for the part of the year the seller owned the home, since the buyer will pay the full bill later. If you are behind on taxes, the delinquent amounts are paid off at closing.

HOA items

Prorated dues, any past-due amounts, and possibly a change-of-ownership or transfer fee, depending on the HOA's documents and what the contract says.

Liens and judgments

Any recorded liens must be paid or released for the title company to insure the sale.

Small recording and document fees

Recording releases or deeds and preparing documents usually involve modest fees.

Seller concessions

In a listed sale, buyers often ask for credits toward their closing costs or for repairs found in inspection. These are negotiated, but they are real money.

What Utah does not charge

Utah does not have a state real estate transfer tax, which some states charge on every sale. That is one fewer line item for Utah sellers.

What changes with a cash buyer

When you sell directly to a cash buyer:

• No commission, because there are no agents involved (unless you choose to have one).
• No repair credits or concessions in most cases, because the price already reflects condition.
• Closing costs may be covered. Many cash buyers offer to pay the seller's typical closing costs, including title and escrow fees. Every offer is different, so look for it in writing.
• Payoffs and prorations still apply. Your mortgage, liens and prorated taxes are still settled at closing.

An example settlement, simplified

Hypothetical round numbers for illustration only.

Item	Amount
Sale price	$350,000
Mortgage payoff	-$180,000
Property tax proration credit to buyer	-$1,500
Title policy and escrow fee (if seller pays)	-$2,500
HOA proration	-$200
Estimated net to seller	$165,800

In a listed sale, commissions and any concessions would also come out.

Costs sellers sometimes forget

A few items catch sellers off guard. Final utility bills and any water or sewer balances owed to the city are your responsibility through closing. Prepaid items like a propane tank fill or a service contract may or may not be credited back, depending on the contract. If you are moving before closing, the costs of keeping the house insured, heated and maintained in the meantime are real, even though they never appear on the settlement statement. And if a mortgage payoff comes in higher than expected because of late fees or escrow shortages, that comes out of your proceeds too.

Tips to avoid surprises

1. Ask any buyer or agent for an estimated net sheet before you sign.
2. Request your mortgage payoff early.
3. Check for liens by asking the title company for a preliminary report once under contract.
4. Ask your HOA about transfer fees and outstanding balances.
5. If you are not a U.S. person for tax purposes, ask the title company about FIRPTA withholding.

The bottom line

In Utah, sellers typically pay their mortgage payoff, any commissions, the owner's title policy under the standard contract, their share of escrow fees, and prorations. There is no state transfer tax. A cash buyer often removes commissions and concessions and may cover closing costs, so compare the net, not just the price.

General information only, not legal, tax or financial advice. Laws and programs change; talk to a Utah attorney, CPA or HUD-approved housing counselor about your situation.