There are a number of pre-payments that usually appear on the closing statement, although some, such as homeowners insurance may be pre-paid by the buyer ahead of closing.

It is possible to give a general guide to these costs, but it is important to bear in mind that these are only approximations, and actual costs may vary.

Fo example, homeowners insurance is likely to require an annual premium of around $1500 to $1800 for a single family pool home. Townhouses and condos are a lot cheaper, at around $500 to $600, because the exterior of the home is covered separately as part of homeowners association fees.

Annual property taxes will range from $2500 for smaller condos up to $6000 for larger pool homes. As these are paid in arrears the taxes for the current year up to closing will often (except close to the end of the year) appear as a credit to the buyer from the seller. The buyer will have to pay the full year's taxes at the end of the purchase year.

Title insurance is most commonly paid by the seller, but sometimes the purchase contract requires the buyer to pay for this. The cost is typically around $600 per $100,000 of the purchase price.

Documentary stamp duty on the deed is calculated on the basis of $7 per $1000 of the contract price. If financing is taken, there is additional duty and tax of $5.50 per $1000 of the mortgage amount. The seller usually pays the duty on the deed, while the buyer pays any mortgage duty and tax. Recording fees and other costs are relatively small.

Property Taxes

This is the one closing cost that is often prorated between the buyer and seller. If the seller has already paid the annual property taxes, the buyer typically reimburses the seller for the period in which the buyer will be occupying the property. Likewise, if the taxes have not yet been paid, the seller typically reimburses the buyer for the period in which the buyer occupied the property.

Transfer Taxes and Recording Fees

This is the cost for transferring ownership of the property and recording the purchase documents. The fee is often calculated as a percentage of the sales price.

Homeowner's Insurance

This insurance covers replacement costs for damages caused by fire, wind or other disaster that might affect the value of the property. Typically, the insurance also covers personal liability and theft.

Flood Insurance

Additional hazard insurance coverage that is required only for homes located in a designated hazard zone as established by the Federal Emergency Management Agency (FEMA).

Title Insurance

This policy protects both the buyer and lender by insuring a clear chain of title. (In other words, it ensures that that the person who sells the house has the legal right to do so.)