When buying or selling a home in South Carolina, the Closing Disclosure Form (CDF) is one of the most critical documents you’ll encounter. It details all the financial aspects of the transaction, ensuring transparency for both buyers and sellers.

The second page of the CDF specifically itemizes closing costs, breaking them down into loan costs, other costs, and prepaid expenses. Understanding each cost can help avoid surprises at the closing table.

Breakdown of Closing Costs on Page 2 of the CDF

A. Loan Costs

These costs are generally associated with obtaining financing and are typically the buyer’s responsibility. They include:

• Origination Charges – Fees charged by the lender for processing the loan, such as an origination fee or discount points.

• Services Borrower Did Not Shop For – Includes required services like credit report fees, flood certification fees, and government recording charges set by the lender.

• Services Borrower Did Shop For – Includes title search, title insurance, and attorney fees, which the buyer can often choose based on recommendations or preference.

B. Other Costs

This section includes government fees, insurance, and other transactional expenses. These costs may be divided between the buyer and the seller.

• Taxes and Other Government Fees – Recording fees for the deed and mortgage are usually paid by the buyer. The South Carolina Deed Recording Fee (also called the transfer tax) is typically paid by the seller.

• Prepaids – These are advance payments required at closing, including:

  • Homeowner’s insurance (paid by the buyer)

  • Mortgage interest (buyer pays interest from closing until the end of the month)

  • Property taxes (prorated based on the closing date, usually split between buyer and seller)

• Initial Escrow Payment at Closing – If the buyer’s loan requires an escrow account, funds may need to be deposited upfront to cover future insurance and tax payments.

C. Cash to Close Summary

This final section summarizes all amounts due at closing, showing credits, adjustments, and the final amount the buyer needs to bring to the table.

Summaries of the Transaction in Layman’s Terms

The Summaries of the Transaction section of the CDF provides an easy-to-read overview of the final financial details between the buyer and the seller.

Seller’s Transaction Summary:

• Lists the gross amount the seller is due from the sale.

• Includes any seller-paid closing costs, outstanding mortgage payoffs, and other deductions.

• Shows the net amount the seller will take home after the sale.

Buyer’s Transaction Summary:

• Summarizes the total amount the buyer must pay, including home price, loan amount, and other expenses.

• Accounts for credits (deposits, loan amounts, or seller-paid costs).

• Shows the final amount the buyer must bring to closing.

This section is especially useful for quickly verifying the bottom line—how much money is changing hands and ensuring that all credits and adjustments have been applied correctly.

Who Pays What?

While closing costs can be negotiated, here’s a typical breakdown in South Carolina:

Buyer Typically Pays:

• Loan origination and lender fees

• Appraisal and credit report fees

• Title search and lender’s title insurance

• Buyer’s attorney fees

• Home inspection and survey costs

• Prepaid homeowner’s insurance and property taxes

• Mortgage recording fees

Seller Typically Pays:

• Real estate commission (if applicable and negotiated)

• Seller’s portion of prorated property taxes

• Deed recording fees (transfer tax)

• Seller’s attorney fees

• Owner’s title insurance policy (commonly negotiated)

Final Thoughts

Understanding the second page of the Closing Disclosure Form helps both buyers and sellers prepare for their financial responsibilities at closing. While some fees are standard, others can be negotiated.

Buyers and sellers should review their Closing Disclosure carefully before signing and consult with their real estate attorney or closing agent to ensure accuracy and fairness.