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Estimate Title Costs →Montgomery County is Maryland's most populous county and one of the most expensive real estate markets in the region. A home in Bethesda, Rockville, Silver Spring, or Germantown easily sells for $500,000 to $1 million or more — and with that price tag comes significant closing costs.
Understanding what you will pay at closing in Montgomery County is essential for budgeting and for negotiating with the other party. Here is the complete breakdown of Montgomery County closing costs for buyers and sellers.
Transfer Taxes in Montgomery County
Transfer taxes are the largest single closing cost line item in Maryland, and Montgomery County has its own rates on top of the state tax:
State transfer tax. Maryland charges a state transfer tax of 0.5% of the purchase price. In Montgomery County, this is typically split between buyer and seller, with each paying 0.25%.
County transfer tax. Montgomery County charges an additional county transfer tax. The current rate is 1.0% of the purchase price. This is also typically split between buyer and seller, with each paying 0.5%.
Combined transfer tax. For a $600,000 home in Montgomery County, the combined transfer tax (at the standard split) would be:
- Buyer pays: $4,500 (0.25% state + 0.5% county)
- Seller pays: $4,500 (0.25% state + 0.5% county)
- Total: $9,000
This can vary if the contract specifies a different split, but this is the traditional Montgomery County custom.
Recordation Taxes in Montgomery County
Recordation tax is charged on the purchase price, not the loan. Maryland lets each county set its own rate, and a purchase-money mortgage recorded with the deed is not taxed separately (Md. Code, Tax–Property §§ 12-103 and 12-108(i)). Unless the contract says otherwise, Maryland law presumes the buyer and seller split it equally (Real Property § 14-104). Montgomery County's rates since October 1, 2023:
- First $500,000 of the price. $4.45 per $500 ($8.90 per $1,000).
- Above $500,000. Each band is taxed at its own higher rate: $6.75 per $500 from $500,000 to $600,000, $10.20 from $600,000 to $750,000, $10.78 from $750,000 to $1 million, and $11.35 above $1 million.
If the buyer will live in the home as a principal residence (at least 7 of the next 12 months), the first $100,000 of the price is exempt. For a $600,000 home the buyer will live in:
- First $100,000: exempt
- $100,000 to $500,000: $3,560
- $500,000 to $600,000: $1,350
- Total recordation tax: $4,910 ($5,800 if the buyer will not live there)
Combined with transfer taxes, the tax line items come to about $13,900 on a $600,000 principal-residence sale in Montgomery County, before the buyer and seller split them.
Title Insurance in Montgomery County
Title insurance is where Montgomery County (and Maryland generally) differs from Virginia and DC:
- Owner's title insurance.In Maryland, the buyer customarily pays for the owner's title insurance policy, as in Virginia, though a seller can agree to cover it.
- Lender's title insurance. The buyer pays for the lender's policy, which is required by any mortgage lender.
For a $600,000 home, the owner's title insurance premium is about $2,900 for a standard policy in Stewart Title's published Maryland schedule, and the lender's policy issued with it is $350, before discounts. Other underwriters' rates differ.
Settlement and Closing Fees
The settlement fee — the title company's charge for handling the closing — is typically paid by the buyer in Montgomery County. This covers document preparation, escrow coordination, signing logistics, and recording.
Expect a settlement fee in the range of a few hundred dollars, depending on the title company.
Other Buyer Closing Costs in Montgomery County
As a buyer in Montgomery County, your closing costs include:
- Your share of transfer taxes. Approximately 0.75% of purchase price (at standard split).
- Your share of recordation tax. Charged on the purchase price, not the loan; about $2,455 as a half share on a $600,000 principal residence.
- Lender's title insurance. Approximately $1,500-$2,000.
- Owner's title insurance. Usually paid by the seller, but confirm in your contract.
- Settlement fee. A few hundred dollars.
- Appraisal fee. Paid to your lender.
- Credit report fee. Paid to your lender.
- Survey fee. If required.
- Flood insurance escrow. If the property is in a flood zone.
For a $600,000 home with a $480,000 loan, buyer closing costs in Montgomery County would typically range from $9,000 to $15,000, depending on whether the seller pays for the owner's title insurance, how the contract splits the taxes, and the lender's fees.
Other Seller Closing Costs in Montgomery County
As a seller in Montgomery County, you typically pay:
- Your share of transfer taxes. Approximately 0.75% of purchase price.
- Owner's title insurance. By tradition, you provide this for the buyer (approximately $2,000-$2,500).
- Real estate commissions. Typically 5-6% of the sale price, split between listing and buyer's agents.
- Prorated property taxes. Prorated to the closing date.
- Any liens or judgments. Must be cleared at closing.
How to Get an Accurate Estimate
The best way to know your exact closing costs in Montgomery County is to request an itemized title quote early in your transaction. Pruitt Title calculates transfer taxes, recordation taxes, title insurance, and all settlement fees for your specific property and provides a detailed breakdown before you close.
Get a free title quote for your Montgomery County transaction. Pruitt Title closes in Bethesda, Rockville, Silver Spring, Gaithersburg, and every other community in the county. For a broader view of Maryland costs, see our closing costs in Maryland guide, or learn about choosing a title company in Bethesda, MD.
Frequently Asked Questions
How much are closing costs in Montgomery County, MD?
For a buyer, closing costs in Montgomery County typically run about 1.5% to 2.5% of the purchase price, depending on loan amount, how the contract splits the taxes, and who pays for the owner's title insurance. For a $600,000 home with a $480,000 loan, expect roughly $9,000–$15,000 in buyer closing costs.
Who pays transfer tax in Montgomery County?
In Montgomery County, transfer tax is traditionally split between buyer and seller. Each pays 0.25% state transfer tax and 0.5% county transfer tax, for a total of 0.75% each. This can be negotiated in the contract.
What is the recordation tax rate in Montgomery County?
Montgomery County charges recordation tax on the purchase price, not the loan: $4.45 per $500 ($8.90 per $1,000) on the first $500,000, with higher rates on each band above $500,000. The first $100,000 is exempt when the buyer will occupy the home as a principal residence. There is no separate state recordation tax — Maryland counties set the rate.
How much is title insurance in Montgomery County?
In Stewart Title's published Maryland schedule, a standard owner's policy for a $600,000 home is about $2,900 before discounts. Who pays it depends in part on local custom and can be negotiated in the contract. The lender's policy (required by your mortgage lender) is $350 in that schedule when it's issued with the owner's policy, and the buyer pays it.
Do sellers pay closing costs in Montgomery County?
The seller customarily pays their share of transfer taxes, and the buyer customarily pays for the owner's title insurance. Other closing costs are negotiable, but this is the standard starting point in Montgomery County. Pruitt Title | DMV Title Guy — Serving buyers, sellers, and agents across Virginia, Maryland, and Washington DC.
General information about title insurance and closing costs in Virginia, Maryland and DC, not legal or tax advice. Tax rates, fees and rules change, so confirm the figures for your own transaction.
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