Who Pays Closing Costs on a Commercial Property in Virginia?

Most of what gets written about closing costs assumes Virginia. If you are buying or selling in the Eastern Panhandle, around Morgantown, or anywhere else in West Virginia, several of those numbers do not apply to you, and one of the biggest Virginia charges does not exist here at all. Here is what actually changes at a West Virginia closing.

The single biggest difference

Virginia charges a grantor’s tax on the seller, calculated on the sale price. West Virginia does not have a tax by that name. What it has instead is an excise tax on the privilege of transferring real property, imposed at the state level, with counties authorized to add their own share on top.

Because the county portion varies, the total transfer cost depends on where in West Virginia the property sits. A figure that is right in Berkeley County may be wrong in Monongalia. We confirm the rate for the specific county rather than quoting a statewide number, and you should be suspicious of any source that gives you one.

Who pays what, by custom

Custom is not law in either state, and the contract governs. That said, the transfer or excise tax is customarily a seller charge in West Virginia, while the buyer typically carries the lender’s charges, the appraisal, the loan origination costs, prepaid interest, and the escrow deposits for taxes and insurance. Recording fees for the deed and the deed of trust are also generally buyer costs.

Everything in that paragraph can be negotiated. Seller concessions toward buyer closing costs are common on both sides of the state line, and they show up on the settlement statement like any other credit. The Virginia version of this split, for comparison, is in who pays closing costs in Virginia.

Where the deed gets recorded

This trips up people crossing from Virginia more than the tax does. Virginia records deeds with the circuit court clerk. West Virginia records with the county clerk, which is a different office entirely. West Virginia also uses a declaration of consideration or value in connection with recording, and requirements around forms and formatting differ from what a Virginia settlement agent is used to preparing.

None of this is difficult. It is simply different, and it is why a firm that closes on both sides of the line is worth having when your transaction crosses it. Our full treatment of the transfer tax itself is in the West Virginia transfer tax.

Title insurance and the search

Title insurance works the same way in concept. The lender requires a policy protecting its interest, and the buyer should carry an owner’s policy protecting theirs. Rates are set by underwriter filings rather than by a single statewide schedule, so the premium is quoted for your transaction rather than looked up in a table.

The search itself covers the same ground: the chain of title, recorded liens, judgments against names in that chain, and the easements and restrictions binding the land. Our title search page explains what one examines.

Property taxes at the closing table

Taxes are prorated between buyer and seller based on the closing date, but West Virginia’s assessment and billing cycle differs from Virginia’s, which changes the arithmetic and sometimes changes who owes whom. We cover the mechanics in property taxes at a West Virginia closing. If you have owned in Virginia before, do not assume the proration will look familiar.

How we help

We close in both states and we quote the actual numbers for your county rather than a regional average. You get a written estimate early, the correct recording requirements for the county clerk where your property sits, and figures that do not change on you at the table.

Common questions

Does West Virginia have a grantor’s tax?

Not by that name. West Virginia imposes an excise tax on the privilege of transferring real property at the state level, and counties are authorized to add their own portion. The structure and the math differ from Virginia’s grantor’s tax.

Who pays the transfer tax in West Virginia?

By custom it is a seller charge, though custom is not law and the contract controls. Buyers typically carry lender charges, appraisal, origination, prepaid interest, escrow deposits, and recording fees.

Why does the closing cost estimate change by county?

Because counties may add their own share to the state excise tax, so the total transfer cost depends on where the property sits. A statewide figure is an average rather than your number.

Where are deeds recorded in West Virginia?

With the county clerk, which is a different office from Virginia’s circuit court clerk. West Virginia also uses a declaration of consideration or value in connection with recording.

Is title insurance different in West Virginia?

The concept is the same. Rates are set through underwriter filings rather than a single statewide schedule, so the premium is quoted for your specific transaction.

Can I use a Virginia closing cost calculator for a West Virginia purchase?

No. It will add a grantor’s tax that does not exist here and omit the excise tax that does, so the result will be wrong in a way that is hard to spot.

This article is general information about closing costs in West Virginia. It is not legal or tax advice, rates and county portions can change, and customs vary by locality and by contract. Please confirm the figures that apply to your transaction with us directly.