Questions

Connecticut closing cost questions

Every question these guides answer, in one place. Each answer links to the guide that carries its sources — this page summarises, it does not replace them.

Closing costsWhat each side pays, line by line.

Who pays closing costs in Connecticut, the buyer or the seller?

Both do, on separate lists. The buyer pays the loan and title charges. The seller pays the conveyance taxes, the broker commission, and the payoff of any existing mortgage, out of the sale proceeds.

Closing costs in Connecticut: what each side pays →
How much are closing costs in Connecticut?

It depends on which side you are on and which lines your lender charges. The one rule-based figure is the conveyance tax, which comes to about 1% of the price on a typical residential sale. This guide leaves a line out rather than publishing an estimate it cannot source.

Closing costs in Connecticut: what each side pays →
Is cash to close the same as closing costs?

No. Cash to close also includes the down payment and the escrow and prepaid items, which fund insurance and property tax bills the owner would pay anyway. Closing costs are the charges themselves.

Closing costs in Connecticut: what each side pays →
When do I find out what my closing costs are?

A buyer with a mortgage receives a Closing Disclosure from the lender three business days before the scheduled closing. Sellers do not receive one; they receive a settlement statement.

Closing costs in Connecticut: what each side pays →

Conveyance taxThe tax nobody explains correctly.

Does Stamford's conveyance tax taper above $1 million?

No. The higher municipal rate applies to every dollar of the sale price, not only to the portion above the line.

A Stamford sale one dollar over $1 million costs about $1,500 more in tax →
What does a Stamford seller pay at exactly $1,000,000?

The lower rate. A sale at exactly $1,000,000 is taxed at 0.35%, which is $3,500 in municipal tax. The higher rate begins above that figure, not at it.

A Stamford sale one dollar over $1 million costs about $1,500 more in tax →
How much is the Stamford step worth?

About $1,500. A sale at $1,000,001 owes $5,000 in municipal tax against $3,500 at exactly $1,000,000.

A Stamford sale one dollar over $1 million costs about $1,500 more in tax →
Do other Connecticut towns work this way?

No. Every other municipality charges a flat municipal rate, 0.25% in most towns and 0.50% in sixteen of them. Stamford is the only stepped rate in the OLR table.

A Stamford sale one dollar over $1 million costs about $1,500 more in tax →
Who pays the conveyance tax in Connecticut?

In most residential sales the seller pays both the state and the municipal conveyance tax, unless an exemption, a special rule, or a negotiated contract term applies.

Who pays the Connecticut real estate conveyance taxes →
Can the buyer end up paying it?

Yes, in two ways. A conveyance in a mobile manufactured home park can make the buyer liable by rule, and a contract can allocate the cost differently from the standard forms.

Who pays the Connecticut real estate conveyance taxes →
Is the conveyance tax negotiable?

Not with the town: the rate is set by statute. Who pays it is a contract term, and the standard Connecticut form purchase agreements put it on the seller.

Who pays the Connecticut real estate conveyance taxes →
What if a settlement statement shows a conveyance tax on the buyer's side?

Ask about it before the closing rather than at it. There are legitimate reasons it can land there, and there are also mistakes.

Who pays the Connecticut real estate conveyance taxes →
What are the Connecticut conveyance tax brackets?

For a residential dwelling the state tax is marginal: 0.75% on the first $800,000, 1.25% on the portion from $800,000 to $2,500,000, and 2.25% above that.

The Connecticut conveyance tax brackets, and the property types they do not cover →
Do the brackets apply to commercial property?

No. Nonresidential property is taxed at a flat 1.25% on the entire sale price, with no bracket step at all.

The Connecticut conveyance tax brackets, and the property types they do not cover →
What rate applies to vacant land?

Unimproved land, including farm, forest and open space, is taxed at a flat 0.75% of the full sale price.

The Connecticut conveyance tax brackets, and the property types they do not cover →
Is the municipal conveyance tax included in those rates?

No. The state and municipal taxes are calculated separately and then added. The municipal rate is 0.25% in most towns and 0.50% in sixteen of them.

The Connecticut conveyance tax brackets, and the property types they do not cover →
Which Connecticut towns charge 0.50% conveyance tax?

Bloomfield, Bridgeport, Bristol, East Hartford, Hamden, Hartford, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Southington, Waterbury and Windham.

Which Connecticut towns charge more than 0.25% conveyance tax →
Does West Haven charge a higher conveyance tax?

No. West Haven charges the base 0.25%. It appears on several published rate lists and in none of the OLR tables.

Which Connecticut towns charge more than 0.25% conveyance tax →
How many Connecticut municipalities are eligible for the surcharge?

Nineteen: the eighteen designated targeted investment communities, plus Bloomfield, which qualifies through a manufacturing plant with enterprise-zone benefits.

Which Connecticut towns charge more than 0.25% conveyance tax →
What does Stamford charge?

A stepped rate. Stamford charges 0.35% on a property sold for up to $1,000,000 and 0.50% on a property sold for more, applied to the whole price rather than tapering.

Which Connecticut towns charge more than 0.25% conveyance tax →

Answering 20 questions across 5 guides. Nothing goes up here until its figures have a source.