Which type of closing cost is not shared between the buyer and seller?

The appropriate type of closing cost that is not shared between the buyer and seller is a non-prorated expense. Non-prorated expenses are those that are typically assigned specifically to one party in a real estate transaction, meaning only the designated party will be responsible for covering that cost. Common examples of non-prorated expenses can include transfer taxes, which are typically paid by the seller, and loan origination fees, which are the responsibility of the buyer.

In contrast, prorated expenses are costs that relate to time-based usage of services that have been partially consumed by both parties by the time of the closing. These costs are divided between the buyer and seller based on the closing date. Shared expenses are costs that are inherent to the transaction and can be negotiated as part of the deal, however, generally, they are still split between both parties in some fashion. Title expenses may sometimes be negotiated to be paid by one party or split, but they do not distinctly categorize themselves as solely a non-shared cost.

Understanding the distinction between non-prorated and prorated expenses helps clarify the financial responsibilities of buyers and sellers in real estate transactions, which is crucial for effective negotiation and budgeting for closing costs.