Missouri Seller Closing Costs: What You Need to Know

Closing costs refer to the expenses a buyer and a seller must pay when property ownership transfers from one party to the other. In Missouri, some closing costs are paid by the seller. If the seller's mortgage loan is not paid off, she must satisfy the remaining balance at closing. Other fees and negotiable expenses are paid at closing before the seller receives any profits from the house sale.

Prorated Property Taxes

Missouri requires a seller to pay her portion of prorated property taxes at closing. A seller must pay real estate taxes from the first of the year until the closing date. A lender, mortgage broker or escrow officer calculates the seller's portion of prorated taxes due at closing.

Prorated Mortgage Interest

If the seller has an unsatisfied mortgage loan, he must pay off the loan before closing. As part of the total pay-off, he is required to pay the prorated mortgage interest from the first of the month until the date of closing. If he has excess in his escrow account, the funds are refunded.

Seller Concessions

Missouri allows a seller to contribute concessions toward the buyer's closing costs. If a buyer chooses to purchase discount points to lower the interest rate on the new mortgage, the seller can pay the points on behalf of the buyer. Generally, a seller receives compensation for the concessions by increasing the selling price of the home by that amount.

Additional Fees

According to St. Louis Missouri Real Estate, additional fees are typically paid by the seller at closing. These fees include the Realtor's commission, transfer taxes, deed documentary stamps and title insurance. An escrow officer, titling agent, mortgage lender or loan officer calculates these fees for the seller before the date of closing.