Who Pays Closing Costs in Oregon: Concessions, Commissions, FIRPTA

In Oregon, no statute dictates who pays closing costs, so the split follows local custom and whatever the buyer and seller write into the purchase contract. By custom, buyers spend roughly 2% to 5% of the purchase price on their side of the table, and sellers pay 7% to 8% once agent commissions are included. Almost every line item is negotiable, which is why knowing the defaults matters: the defaults are your starting point, not the rule.

The Seller’s Side of the Closing Statement

Sellers carry the costs of delivering clean title and closing out their ownership. The main items:

Owner’s title insurance. Oregon custom puts the standard owner’s policy on the seller. It protects the buyer against undiscovered liens, recording errors, and other defects in the ownership history. On a $500,000 home, the premium runs about $2,200 under rates set by the Oregon Title Insurance Rating Organization. If the buyer wants extended coverage or special endorsements, the buyer pays the difference.
Property tax proration. Oregon’s fiscal year runs July 1 through June 30. Under ORS 311.275, unless the contract says otherwise, the seller owes taxes for every day of the fiscal year before closing and the buyer picks up the rest. Close in November, after the seller has paid the full-year bill due November 15, and the buyer credits the seller for the months remaining. Close before taxes are due and the seller credits the buyer.¹
Half the escrow fee. Escrow handles the secure exchange of funds and documents, and the total scales with the sale price. Sellers customarily pay half.
Recording fees for lien releases. If the seller has a mortgage or other recorded liens, the cost of recording the satisfaction documents is theirs. Oregon counties charge $5 per page, with a $5 minimum.²
Utility holdbacks. Final water and sewer bills often arrive after closing. Escrow can hold back funds from the seller’s proceeds, then release the balance once the utilities confirm zero.

The Buyer’s Side of the Closing Statement

Buyer costs cluster around financing the loan and getting ownership onto the public record. Most of these show up on the Loan Estimate your lender provides within three business days of your application.

Loan origination fee. Charged by the lender for processing the mortgage, typically 0.5% to 1% of the loan amount.
Appraisal. Your lender requires a licensed appraiser to confirm the home’s value. In Oregon, a standard single-family appraisal runs about $400 to $600. Complex or rural properties cost more.
Credit report fee. Usually under $50.
Lender’s title insurance. Protects the lender’s interest in the property and is required on virtually every mortgage. The buyer pays for this separately from the owner’s policy the seller provides.
Recording the deed. At $5 per page under ORS 205.320, a typical two-page deed costs $10.²
Half the escrow fee.
Prepaid interest. Daily interest on the new mortgage from the closing date through the end of the month. Close on March 10 and you prepay interest for March 10 through March 31.³
Homeowners insurance. Lenders require the first year’s premium paid at or before closing.
Escrow reserves. Your lender may prefund an escrow account with several months of property tax and insurance payments.

If you have less than 20% down on a conventional loan, add private mortgage insurance to your monthly payment, typically 0.5% to 1.5% of the loan amount per year. FHA loans swap PMI for a 1.75% upfront mortgage insurance premium at closing, usually rolled into the loan balance, plus an annual premium split monthly.⁴ VA borrowers pay a one-time funding fee of 2.15% for first-time use with less than 5% down, 1.5% with 5% or more down, with an exemption for veterans with service-connected disabilities.⁵

Inspections aren’t technically closing costs, but buyers pay for them during the contract period. A general home inspection in Oregon runs $425 to $550, with radon testing ($200 to $400) and sewer scope ($250 to $300) as common add-ons, paid directly to the inspector.

Agent Commissions After the 2024 NAR Settlement

Agent commissions are the single largest closing cost in most Oregon sales, and the rules shifted in August 2024. Before the National Association of Realtors settlement took effect, the seller almost always paid a combined commission covering both agents, typically 5% to 6% of the sale price. On a $500,000 home, that’s $25,000 to $30,000.

Under the new rules, sellers are no longer required to offer compensation to the buyer’s agent through the MLS. Sellers still negotiate a commission with their own listing agent and can still choose to offer compensation to the buyer’s agent as part of the deal. The buyer’s agent commission is now negotiated separately between the buyer and their agent, often through a written buyer-broker agreement signed before the agent shows homes. Many Oregon sellers continue offering buyer-agent compensation to attract more showings, but the automatic expectation is gone. If you’re buying, budget for the possibility that you’ll cover your own agent’s fee or negotiate for the seller to contribute toward it.

Shifting Costs Through Seller Concessions

Oregon purchase contracts, usually built on Oregon Real Estate Forms (OREF), include fields for assigning specific costs or requesting lump-sum credits. The most common move is a seller concession: the buyer asks the seller to pay a flat dollar amount toward the buyer’s closing costs, reducing the cash the buyer brings to the table.

Every loan type caps how much the seller can contribute:

Conventional (Fannie Mae): 3% of the sale price if your down payment is under 10%, 6% at 10% to 25% down, and 9% at 25% or more down.⁶
FHA: Up to 6% of the sale price regardless of down payment.
VA: No cap on seller contributions toward actual closing costs, but seller concessions for items like prepaid taxes and the VA funding fee cannot exceed 4% of the home’s reasonable value.⁵

Contributions above the cap get treated by the lender as a price reduction, which can throw off your loan-to-value ratio and potentially kill the deal. Market conditions drive how far concessions get you. In a market where sellers field multiple offers, asking for concessions weakens your bid. In a slower market, motivated sellers often agree to cover fees they’d normally push to the buyer. The contract is the final word: if it says the seller pays the full escrow fee, that’s what happens regardless of custom.

Washington County Transfer Tax

Oregon has no statewide real estate transfer tax. The one exception is Washington County, which charges $1 per $1,000 of the sale price on every transfer of real property within its borders.⁷ On a $500,000 home, that’s $500. Sales under $14,000 can apply for an exemption.

The county code assigns liability “between the purchaser and seller,” and local custom splits it evenly, with each side paying $0.50 per $1,000 of value unless the contract says otherwise. Outside Washington County, this line item doesn’t appear on the closing statement at all.

FIRPTA Withholding When Buying From a Foreign Seller

If you’re buying a home from a foreign seller (someone who isn’t a U.S. citizen, permanent resident, or qualifying domestic entity), federal law requires you, as the buyer, to withhold a percentage of the sale price and send it to the IRS. The standard rate is 15% of the total amount realized.⁸

Two exceptions reduce or eliminate the obligation when the buyer plans to use the home as a primary residence. If the sale price is $300,000 or less and the buyer or a family member intends to live in the property at least 50% of the days it’s occupied during each of the first two years, no withholding is required. For residences priced between $300,001 and $1,000,000 that meet the same occupancy test, withholding drops to 10%.⁹ Withholding also doesn’t apply when the seller provides a signed certification under penalty of perjury that they are not a foreign person. The escrow company handles the logistics, but the legal responsibility sits with the buyer. Skip the withholding and the IRS can come after you for the amount that should have been withheld plus penalties.

1
Oregon State Legislature. Oregon Revised Statute Chapter 311 – Collection of Property Taxes
2
Oregon State Legislature. Oregon Revised Statute Chapter 205 – County Clerk Fees
3
Consumer Financial Protection Bureau. What Are Prepaid Interest Charges?
4
U.S. Department of Housing and Urban Development. Appendix 1.0 – Mortgage Insurance Premiums
5
U.S. Department of Veterans Affairs. VA Funding Fee and Loan Closing Costs
6
Fannie Mae. Interested Party Contributions (IPCs)
7
Washington County, OR. Transfer Tax Exemption and Application Forms
8
Internal Revenue Service. FIRPTA Withholding
9
Internal Revenue Service. Exceptions from FIRPTA Withholding