Closing Costs in Greenwich: Taxes and Fees to Expect

Buying or selling in Greenwich can come with more line items at closing than you expect. Between Connecticut’s tiered transfer taxes, local recording fees, and attorney-led closings, the numbers add up quickly. If you understand what each charge is, who usually pays it, and how to estimate it, you can plan with confidence and avoid surprises. This guide breaks down the key taxes and fees in Greenwich, with simple examples you can use to budget. Let’s dive in.

What closing costs cover in Greenwich

Closing costs are the expenses needed to transfer a home from seller to buyer. Many are standard across Connecticut, and a few are specific to Greenwich.

Seller costs at a glance

• State real estate conveyance tax (tiered by price) and the Greenwich municipal conveyance tax of 0.25%.
• Real estate broker commission (commonly 4–6% in Connecticut, negotiated).
• Attorney fees, recording fees, mortgage payoff and any lien releases.
• Prorations for property taxes and HOA charges if applicable.

Buyer costs at a glance

• Loan origination and lender fees, appraisal, credit report, and points if selected.
• Title search and title insurance (lender’s policy is typical; owner’s policy is optional).
• Attorney fees, recording fees, inspections, survey if needed.
• Prepaid items and escrows like homeowner’s insurance and property taxes.

According to consumer research, buyers in Connecticut often budget about 2% to 5% of the purchase price for closing costs, depending on loan type and down payment. You can see typical ranges in statewide summaries from sources like Bankrate’s closing cost overview.

Greenwich transfer taxes explained

Connecticut imposes a state real estate conveyance tax on most sales. Sellers typically pay it at closing, and it is tiered for residential property. The current schedule is set in the Connecticut General Statutes, Chapter 223 and summarized by the Department of Revenue Services:

• 0.75% on the first $800,000 of the sale price.
• 1.25% on the amount over $800,000 up to $2.5 million.
• 2.25% on the amount over $2.5 million.

Greenwich also collects a municipal conveyance tax of 0.25% of the sale price ($2.50 per $1,000). Local reporting confirms the town’s rate and practice for collections in recent years, including coverage of strong revenue from this tax in active markets (Greenwich Time).

Quick tax examples (seller)

• $800,000 sale: State tax = $6,000. Municipal tax = $2,000. Total transfer taxes = $8,000.
• $1,500,000 sale: State tax = $6,000 (first $800k) + $8,750 (next $700k) = $14,750. Municipal tax = $3,750. Total = $18,500.
• $3,000,000 sale: State tax = $6,000 (first $800k) + $21,250 (next $1.7M) + $11,250 (over $2.5M) = $38,500. Municipal tax = $7,500. Total = $46,000.

Recording fees and paperwork in Greenwich

As of July 1, 2025, Connecticut updated land‑recording fees. In Greenwich, the Town Clerk collects $70 for the first page and $5 for each additional page for most documents, plus a small $2 surcharge for reportable conveyances. Plan for a modest range depending on document count. You can confirm current procedures on the Greenwich Town Clerk page.

Attorney-led closings in Connecticut

In Connecticut, most real estate closings must be conducted by a licensed attorney. This practice is long‑standing and reinforced by state rules and guidance. That is why you will see attorney fees on nearly every closing statement. Fee structures vary by firm and complexity; flat fees are common. Learn more in legal briefings such as this JD Supra overview.

Property tax proration and Greenwich’s mill rate

At closing, property taxes are prorated based on the closing date. The seller typically credits the buyer for the portion of the tax period after closing. Greenwich set a mill rate of 12.041 for fiscal year 2025–2026, as reported by Greenwich Time. To estimate proration, use the current bill and the exact closing date. Your attorney or title company will calculate the final credit on the closing statement.

Commissions and the 2024 rule changes

Commissions are negotiable. In Connecticut, a total commission in the range of 4–6% has been common, though terms are changing. Recent industry reforms shifted how buyer‑agent compensation is offered and negotiated. Buyers now typically sign a written agreement with their agent and may be responsible for that fee unless the seller agrees to cover it. See consumer research on typical commission ranges in Connecticut and context on the 2024 changes from Reuters.

Example closing math

Use these illustrations to see how items stack up. Your actual figures will depend on your contract, quotes, and payoffs.

Example A: $800,000 sale (seller)

• State conveyance tax: $6,000.
• Greenwich municipal tax: $2,000.
• Broker commission (assume 5%): $40,000.
• Attorney and recording: approximately $1,100 to $2,700+ depending on scope and pages.
• Total before mortgage payoff and prorations: about $49,100 to $52,700.

Example B: $3,000,000 sale (seller)

• State conveyance tax: $38,500.
• Greenwich municipal tax: $7,500.
• Broker commission (assume 5%): $150,000.
• Attorney, title coordination, and recording: several thousand depending on complexity.
• Total transfer taxes alone: about $46,000, which is a major line item in high‑end Greenwich sales.

How to prepare and reduce surprises

• Ask your attorney or listing agent for a preliminary net sheet if you are a seller. This will include the state and municipal conveyance taxes, commission, attorney fees, and estimated recording charges.
• If you are a buyer, request a Loan Estimate from your lender early. It will itemize lender fees, prepaids, and escrows. Shop attorney and title quotes so you know your policy and search costs in advance.
• Clarify agent compensation in writing. If you are a buyer, confirm how your agent will be paid and whether any portion is covered by the seller.
• Review tax prorations close to closing. Ensure the latest mill rate and actual tax bills are used for accuracy.

Buyer and seller checklists

Seller checklist

• State conveyance tax (tiered) and Greenwich municipal tax at 0.25%.
• Broker commission per your listing agreement.
• Attorney fee and recording charges.
• Mortgage payoff, lien releases, and HOA transfer fees if applicable.
• Property tax proration and agreed repair credits.

Buyer checklist

• Loan origination, appraisal, and credit report.
• Lender’s title insurance and optional owner’s policy.
• Attorney fee, recording, and inspection costs.
• First‑year homeowner’s insurance and escrow deposits.
• Property tax proration from the closing date.

When you are ready to plan your next move in Greenwich or the New York area, connect with the international, concierge approach of BARNES New York. We will help you model your numbers, coordinate the right advisors, and move forward with clarity.

FAQs

What taxes do sellers pay at closing in Greenwich?

• Sellers usually pay Connecticut’s state conveyance tax and Greenwich’s 0.25% municipal conveyance tax, both collected at closing, unless the contract allocates them differently.

How much should a buyer budget for closing costs in Connecticut?

• Many buyers set aside about 2% to 5% of the purchase price for lender fees, title, prepaids, and related charges, with final amounts varying by loan and property.

Are attorneys required for real estate closings in Connecticut?

• Most closings must be conducted by a licensed attorney, so both buyers and sellers typically engage counsel and pay corresponding legal fees.

What is the current recording fee structure in Greenwich?

• For most documents it is $70 for the first page and $5 for each additional page, plus a small surcharge on reportable conveyances.

How are property taxes handled at closing in Greenwich?

• Taxes are prorated based on the closing date using the current mill rate and tax bills, with the seller crediting the buyer for the post‑closing portion of the period.