Thinking about moving from Cincinnati to Covington or selling in Northern Kentucky and buying in Ohio? The rules on closing costs change once you cross the river, and that can affect your bottom line. You want clear numbers, no surprises, and a plan that fits your timeline. In this guide, you’ll learn what closing costs include, who typically pays what, and which Ohio vs Kentucky differences matter most for your budget. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and credits that settle your sale or purchase. They usually fall into these buckets:
- Lender charges: origination, underwriting, processing, discount points, and appraisal (for financed buyers).
- Title and closing services: title search, lender’s and owner’s title insurance, and settlement or attorney fees.
- Government charges: recording fees for deed and mortgage, transfer or conveyance taxes if applicable, and release fees for paid-off liens.
- Prorations and prepaids: property taxes, HOA dues, prepaid interest, and the first year of homeowner’s insurance plus escrow deposits.
- Real estate commissions: typically the largest seller expense, negotiated in the listing agreement.
Ohio vs Kentucky: key differences to expect
When your move crosses the Ohio–Kentucky line, most line items look familiar. The biggest differences tend to involve government fees, title premiums, and closing practices.
Transfer and recording taxes
- Some states and counties charge a transfer or conveyance tax; others do not, or they charge different amounts. Do not assume Ohio and Kentucky match. Confirm whether a transfer or mortgage recording tax applies for the county where the property sits, and who customarily pays it.
- County recording fees vary by county and document type. A Kenton County deed or mortgage can cost a different amount to record than a Hamilton County document.
Title insurance premiums
- Title insurance premium formulas are state-based. The same $300,000 purchase can generate different owner’s and lender’s policy premiums in Kentucky vs Ohio.
- Always request a local title quote in the state where the property is located.
Who pays the owner’s policy
- In many U.S. markets, sellers often pay for the owner’s title policy, but customs vary—even across Greater Cincinnati and Northern Kentucky. Clarify in your contract who pays for the owner’s policy.
Closing agent or attorney
- Ohio closings are commonly handled by title companies and escrow agents.
- Kentucky closings often involve an attorney, and fee structures can look different. Ask who will conduct settlement and how the fee is split.
County-specific rules
- Recording and transfer practices follow the county where the property is located. For cross-river deals, plan to close under that county’s rules and fee schedule.
Who usually pays what
Customs can vary by neighborhood and are always negotiable, but here is what you typically see in the Greater Cincinnati/Covington area:
- Real estate commission: usually paid by the seller per the listing agreement.
- Owner’s title insurance policy: varies by local custom; confirm with your agent or title company and specify in the contract.
- Lender’s title insurance: paid by the buyer when financing.
- Loan fees and appraisal: buyer cost.
- Survey (if needed): often buyer, but sometimes shared or provided by seller if acceptable.
- Settlement/escrow or attorney fee: varies by state and company; sometimes split, sometimes separate for each party.
- Recording charges: buyers typically pay to record the mortgage; deed recording allocations vary by custom.
- Transfer or conveyance taxes: state and county dependent; confirm applicability and customary payer up front.
- Inspections and pest: buyer cost.
- HOA transfer and estoppel: often a seller expense, but confirm with the HOA and negotiate in the contract.
Budgeting: what to expect by side of the table
- Buyers: a common planning range is about 2% to 4% of the purchase price for closing costs, excluding down payment. This can include lender fees, title and recording, prepaid interest, the first year of homeowner’s insurance, and escrow deposits.
- Sellers: with commission included, total costs often land around 6% to 10% of the sale price. Without commission, seller closing costs like title, recording, transfer taxes if any, and prorations are usually much lower, often in the 1% to 3% range depending on local fees.
- Important note: These are illustrative ranges. Actual numbers vary by county and state because of different title premiums, recording fees, and any applicable transfer or mortgage taxes.
Covington focus: Kenton County specifics to verify
If you are buying or selling in Covington (Kenton County, KY), build your plan around the county where the property sits.
- Ask for a written estimate of Kenton County recording fees for deed and mortgage, plus any transfer or documentary taxes that may apply.
- Confirm who will conduct closing. In Kentucky, attorney involvement is common. Clarify the settlement or attorney fee and how it is split.
- Pin down who pays for the owner’s title policy. Do not assume the seller pays unless it is written into the contract.
- Request payoff figures early if you are selling, including any lien releases required for recording.
Sample scenario: a $300,000 financed purchase
This is only an illustration to help you plan conversations with your lender and title company.
- Buyer closing costs: about $6,000 to $12,000 (2% to 4%). That range can include lender fees, appraisal, lender’s title policy, mortgage recording, prepaid interest, escrow deposits, and the first year of homeowner’s insurance.
- Seller closing costs: roughly 7% to 10% ($21,000 to $30,000) including commission, possible owner’s policy if the seller pays by custom or contract, prorations, and wiring/courier fees. Negotiated seller credits can change buyer cash to close.
- Your exact number will depend on the county’s fee schedule, whether a transfer tax applies, and state-based title premiums.
Red flags that lead to last-minute surprises
- Assuming Ohio and Kentucky fees match. Recording and any transfer or mortgage taxes are state and county specific.
- Owner’s title policy misunderstandings. If the contract is silent, you may end up paying an item you did not budget for.
- Late payoff statements. Sellers should request payoff letters and lien release details early.
- HOA estoppel delays. Confirm fees, timelines, and any outstanding assessments well before closing.
- Vague concessions. Spell out which closing costs a seller credit covers to avoid shortfalls at the table.
Your early-action checklist
- Get your Loan Estimate within three business days of application and review which items your lender will collect at closing.
- Ask a local title company or Kentucky closing attorney for a written estimate that includes title premiums, settlement fees, county recording charges, and any transfer or documentary taxes.
- Include a clear “who pays what” section in the contract for owner’s title insurance, recording charges, HOA fees, tax prorations, and any seller concessions.
- If selling, request a Seller Net Sheet that shows commission, payoffs, prorations, and estimated closing costs.
- Confirm HOA transfer and estoppel fees and turnaround time.
Ready to move cross-river with confidence?
Buying or selling across Cincinnati and Covington does not have to be complicated. With clear estimates, a strong contract, and local guidance, you can protect your budget and your timeline. If you want a detailed, property-specific plan for Kenton County or the Ohio side, reach out to Deborah Long for a friendly, no-pressure consult.
FAQs
What do closing costs include for a Covington buyer?
- They typically include lender fees, appraisal, lender’s title insurance, county recording, prepaid interest, the first year of homeowner’s insurance, and escrow deposits.
Who usually pays the owner’s title policy in Northern Kentucky and Cincinnati?
- Customs vary by market and even by deal; confirm with your agent and title company and put the payer in the contract to avoid confusion.
Are there transfer or mortgage taxes for homes in Kenton County or Hamilton County?
- It depends on state and county rules; ask the title company or closing attorney to confirm whether a tax applies, the amount, and the customary payer.
Do I need an attorney to close in Kentucky or Ohio?
- Attorney involvement is more common in Kentucky, while Ohio closings often run through title companies; ask who will conduct your settlement and what the fee includes.
How are property taxes prorated at closing in Covington?
- Taxes are typically prorated so each party pays their share for the period they own the home; your title company will calculate credits and debits on the Closing Disclosure.
How much should I budget as a seller in Greater Cincinnati/Covington?
- Many sellers plan for 6% to 10% of the sale price when including commission; without commission, seller closing costs are often closer to 1% to 3% depending on local fees.
