Closing Disclosure Junk Fees: A State-by-State Guide

A junk fee meets one or more of these criteria: the description is vague ('administrative fee,' 'miscellaneous'), the service is already covered by another fee you're paying (processing fee alongside origination), the amount is dramatically above cost (a $75 wire transfer fee when the actual cost is $10), or the fee was not disclosed on your Loan Estimate and appeared for the first time on the Closing Disclosure.

Universal junk fees that appear across all 50 states include: document preparation fees ($75-$600, duplicative of origination), courier/delivery fees ($25-$100, obsolete in electronic closings), inflated wire transfer fees ($50-$75 when actual cost is $10-$15), 'administrative' or 'processing' fees layered on top of origination, and tax service fees above $100.

Three state-level factors determine which junk fees you'll see and whether you can fight them:

Attorney states vs. non-attorney states: About 20 states require or strongly recommend attorney involvement at closing. In these states, the attorney fee ($500-$2,000) is a legitimate cost — but watch for attorneys who itemize sub-tasks (title examination, document review, closing supervision) as separate charges when they should be included in the flat fee.

Title insurance regulation: In promulgated-rate states (TX, FL, OH, NM, NC, and others), title insurance rates are set by the state and identical across all companies. In file-and-use states, rates vary by company and can be shopped. In promulgated states, any title insurance charge that doesn't match the state schedule is an error. In unregulated states, inflated title insurance is the most common high-dollar overcharge.

Transfer tax structure: States with transfer taxes often have complex rules about who pays. Some title companies add 'transfer tax service fees' ($50-$150) for calculating transfer taxes — a computation that takes 30 seconds. This is a junk fee in every state.

Connecticut: Attorney state. Conveyance tax of 0.75% (residential) to 1.25% (over $800K). Title insurance rates are filed but vary by company — shop aggressively. Watch for: inflated attorney sub-charges, separate 'title examination' fees on top of attorney flat fee. Town-specific conveyance tax surcharges exist in some municipalities.

Delaware: Not technically an attorney state, but attorneys handle most closings. Transfer tax is 4% combined (2% state + 2% county in most counties) — among the highest in the nation. First-time buyers get a 0.5% reduction. Title insurance is unregulated. Watch for: inflated title premiums (shop multiple companies), unnecessary 'settlement fees' on top of attorney charges.

Maine: Attorney state. Transfer tax is $2.20 per $500 (0.44%), split between buyer and seller. Title insurance is unregulated. Watch for: separate 'title search' and 'title examination' charges that should be bundled into the attorney fee, inflated recording fee estimates.

Maryland: Not an attorney state, but attorneys are common. Transfer tax varies by county (0.25% to 1.5% county tax + 0.5% state tax). Title insurance rates are filed. Watch for: excessive settlement agent fees (shop agents), separate 'lien certificate' fees that duplicate title search work. Howard County and Montgomery County have the highest combined transfer rates.

Massachusetts: Attorney state. Transfer tax (deed stamps) is $2.28 per $500 (0.456%). Title insurance rates are regulated by the Division of Insurance — all companies should charge the same rate. Watch for: 'title examination' fees charged separately from the attorney fee, inflated discharge tracking fees ($50-$150 for an automated process).

New Hampshire: Attorney state. Transfer tax is 0.75% each for buyer and seller (1.5% total). Title insurance is unregulated. Watch for: excessive title insurance premiums (one of the most opaque title markets in New England), attorney fees above $1,000 for standard residential closings.

New Jersey: Effectively attorney state (attorneys involved in virtually all transactions). NJLTA-regulated title insurance rates — non-negotiable. Realty Transfer Fee (seller-paid) is among the highest in the nation. Watch for: attorney fees above $2,000, separate charges for 'contract review' and 'closing attendance' when these should be included in the flat fee. The graduated fee on $1M+ sales shifted from buyer to seller effective July 2025.

New York: Attorney state. NYC has some of the highest closing costs in the nation due to Mortgage Recording Tax (1.8% on loans $500K+), Mansion Tax (1-3.9% on purchases $1M+), and state transfer tax (0.4%). Upstate is far cheaper. Title insurance is regulated by DFS — rates should match the filed schedule. Watch for: 'pick-up and delivery' fees, 'bank attorney fees' passed to the buyer, and any title insurance charge that doesn't match the DFS rate manual.

Pennsylvania: Not an attorney state for most transactions. Transfer tax is 1% state + 1% local in most counties (2% total; Philadelphia is 3.278% combined). Title insurance is unregulated. Watch for: inflated title insurance premiums (PA is one of the most expensive unregulated title markets), excessive 'settlement fees' from title companies, separate 'notary fees' above $150.

Rhode Island: Attorney state. Transfer tax is $2.30 per $500 (0.46%). Title insurance is unregulated. Watch for: inflated title premiums in a small market with limited competition, attorney fees above $800 for standard residential closings.

Vermont: Attorney state. Transfer tax is 1.45% on the first $100K, 1.25% on the remainder (residential); 2.5% for non-principal residences under Act 181 (effective 2024). Title insurance is unregulated. Watch for: non-principal residence surcharge being applied incorrectly, excessive title premiums in a small market.

Alabama: Attorney state. Transfer tax (deed tax) is $0.50 per $500 (0.1%). Title insurance is unregulated. Watch for: inflated title premiums, separate 'closing fee' and 'settlement fee' charges when the attorney already charges a flat fee.

Florida: Not an attorney state. Doc stamps of $0.70 per $100 (0.7%) on deeds plus intangible tax of 0.2% on mortgages. Title insurance rates are promulgated by OIR — all companies must charge the same rate. Watch for: any title insurance charge that deviates from the OIR rate schedule, 'title search fees' above $200 (the search is part of the title insurance process), excessive 'closing fees' from title companies ($400+ warrants scrutiny).

Georgia: Attorney state. Transfer tax is $1.00 per $1,000 (0.1%). Intangible recording tax is 0.3% of the loan amount — this is a significant buyer cost ($900 on a $300K loan) that is set by law and non-negotiable. Title insurance is unregulated. Watch for: excessive attorney fees (above $1,000 for standard residential), inflated title insurance in an unregulated market, any attempt to charge intangible tax above the statutory 0.3%.

Kentucky: Not required attorney state but attorneys are common. Transfer tax is $0.50 per $500 (0.1%). Title insurance is unregulated. Watch for: inflated title premiums, duplicative 'settlement' and 'closing' fees.

Louisiana: Civil law state with unique closing procedures (notary-based rather than attorney/title company). No transfer tax. Title insurance is unregulated. Watch for: excessive notary fees, inflated title insurance premiums, 'mortgage certificate' fees above $50.

Mississippi: Not an attorney state. No transfer tax. Title insurance is unregulated. Watch for: inflated title premiums (limited competition in rural areas), excessive 'closing agent' fees.

North Carolina: Attorney state. Excise tax of $2.00 per $1,000 (seller-paid). Title insurance rates are NCTIRB-regulated — non-negotiable and among the lowest in the nation. Origination fees are capped at 0.25% by state law. Watch for: any origination fee above 0.25% (a compliance violation), attorney fees above $1,500, and failure to apply the 50% reissue rate discount on resale properties.

South Carolina: Attorney state. Transfer tax (deed stamps) is $1.85 per $500 (0.37%). Mortgage recording fee is 0.2% of the loan amount. Title insurance is unregulated. Watch for: inflated title insurance, excessive attorney fees above $1,000, and 'courier fees' on electronic closings.

Tennessee: Not an attorney state. Transfer tax (deed tax) is $0.37 per $100 (0.37%). Mortgage recording tax is 0.115% of the loan amount. Title insurance is unregulated. Watch for: inflated title premiums, separate 'title search' fees above $250, and 'administrative' or 'technology' fees from title companies.

Virginia: Not an attorney state (settlement agents handle closings). Combined recordation taxes of $5.00 per $1,000 on buyer (deed + deed of trust). Title insurance is file-and-use — rates vary by company. Watch for: inflated title insurance (shop underwriters — rates differ significantly in VA), excessive settlement agent fees above $975, and any 'RESA compliance fee' (Virginia's RESA law prohibits certain fee practices).

West Virginia: Not an attorney state. Transfer tax is $1.10 per $500 (0.22%) state + $1.65 per $1,000 county excise. Title insurance is unregulated. Watch for: inflated title premiums, excessive 'closing agent' fees, and 'document preparation' fees from the lender.

Illinois: Not an attorney state, but attorneys are common in the Chicago metro area. Transfer tax varies — state charges $0.50 per $500 (0.1%) plus county/city taxes (Chicago adds $7.50 per $1,000). Title insurance rates are filed. Watch for: excessive Chicago municipal transfer tax surprises, inflated title premiums in the Chicago market, and 'GAP coverage' fees ($25-$75) that may or may not be necessary.

Indiana: Not an attorney state. No state transfer tax (constitutionally prohibited). Title insurance is unregulated. Watch for: inflated title premiums (take advantage of no transfer tax savings by scrutinizing other fees), excessive 'settlement' or 'closing' fees from title companies.

Iowa: Not an attorney state. Transfer tax is $0.80 per $500 (0.16%). Iowa Title Guaranty provides owner's title insurance at no charge on homes under $750K — this is unique nationwide. Watch for: any company charging for owner's title insurance when Iowa Title Guaranty covers it for free, and excessive lender's title insurance charges.

Kansas: Not an attorney state. No state transfer tax. Title insurance is unregulated. Watch for: inflated title premiums, and 'mortgage registration fees' that duplicate recording charges.

Michigan: Not an attorney state. Transfer tax is $7.50 per $1,000 (0.75%) on the full value. Title insurance is regulated by DIFS — rates should be uniform. Watch for: any title insurance charge that deviates from the DIFS schedule, excessive 'closing' or 'settlement' fees, and 'state equalization value fee' surcharges.

Minnesota: Not an attorney state. Deed tax is $3.30 per $1,000 (0.33%), seller-paid. Mortgage registration tax is 0.23% of the loan amount, buyer-paid. Title insurance is unregulated. Watch for: inflated title premiums, the mortgage registration tax being calculated on the wrong amount, and excessive 'abstracting' fees.

Missouri: Not an attorney state. No state or local transfer tax (constitutionally prohibited — one of the few states with this protection). Title insurance is unregulated. Watch for: inflated title premiums (with no transfer tax, this is the main variable closing cost), and excessive 'document preparation' or 'settlement' fees.

Nebraska: Not an attorney state. Documentary stamp tax is $2.25 per $1,000 (0.225%). Title insurance is regulated — rates should be uniform. Watch for: any deviation from the regulated title insurance schedule, and excessive 'closing' fees from title companies.

North Dakota: Not an attorney state. No transfer tax. Title insurance is unregulated. Watch for: inflated premiums in a small market with limited competition, and excessive 'abstracting' or 'title examination' fees.

Ohio: Not an attorney state. Transfer tax is $1.00 per $1,000 county conveyance fee (some counties add a permissive tax up to $3.00 per $1,000). Title insurance rates are promulgated by the Ohio DOI — all companies charge the same rate. Watch for: any title insurance charge that doesn't match the DOI schedule, excessive 'closing' fees, and county-specific permissive transfer tax rates (verify the exact rate for your county).

South Dakota: Not an attorney state. Transfer tax is $0.50 per $500 (0.1%). Title insurance is unregulated. Watch for: inflated premiums in a small market, and excessive 'abstracting' fees (abstract companies are common in SD).

Wisconsin: Not an attorney state. Transfer tax is $3.00 per $1,000 (0.3%). Title insurance is unregulated. Watch for: inflated title premiums, excessive 'closing' fees, and 'tax certificate' fees above $40.

Alaska: Not an attorney state. No transfer tax. Title insurance is unregulated. Watch for: inflated title premiums (limited competition in a remote market), excessive 'closing agent' fees, and higher-than-average appraisal costs due to property accessibility.

Arizona: Not an attorney state. No transfer tax. Title insurance is unregulated. Watch for: inflated title premiums (AZ is a competitive title market — shop aggressively), excessive 'escrow' fees, and 'HOA transfer' or 'HOA disclosure' fees above $400.

California: Not an attorney state (escrow companies handle closings). County documentary transfer tax of $1.10 per $1,000 plus city-level taxes that vary dramatically (LA, SF, Oakland, Berkeley have high additional taxes). Title insurance is unregulated (file-and-use). Watch for: inflated title premiums (shop 2-3 companies for 10-30% savings), escrow fees above $3,000 on standard transactions, NHD report fees above $150, and city transfer tax surprises in the Bay Area and LA.

Colorado: Not an attorney state. No state transfer tax (some municipalities impose local taxes). Title insurance is unregulated. Watch for: inflated title premiums (CO is an active title market — shop for quotes), excessive 'closing' fees, and local transfer taxes in municipalities like Boulder.

Hawaii: Not an attorney state. Conveyance tax ranges from 0.1% to 1.25% on a graduated scale based on sale price. Title insurance is unregulated. Watch for: inflated title insurance in a limited-competition island market, excessive 'escrow' fees, and conveyance tax calculated on the wrong bracket.

Idaho: Not an attorney state. No transfer tax. Title insurance is unregulated. Watch for: inflated title premiums (limited competition in rural areas), and excessive 'closing' or 'document preparation' fees.

Montana: Not an attorney state. No transfer tax. Title insurance is unregulated. Watch for: inflated premiums in a small market, and 'abstracting' fees that duplicate title insurance work.

Nevada: Not an attorney state. Transfer tax is $1.95 per $500 (0.39%), split between buyer and seller by custom. Some counties add a local tax. Title insurance is unregulated. Watch for: inflated title premiums, excessive 'escrow' fees, and transfer tax being allocated differently than agreed in the purchase contract.

New Mexico: Not an attorney state. No general transfer tax. Title insurance rates are promulgated — all companies charge the same rate. Watch for: any title insurance charge that deviates from the promulgated schedule, and excessive 'closing agent' fees. NM is one of the cheapest states for title insurance.

Oklahoma: Not an attorney state. Documentary stamp tax is $0.75 per $500 (0.15%) on deeds plus $0.02 per $100 on mortgages. Title insurance is unregulated. Watch for: inflated title premiums, abstract fees in rural areas, and 'processing' fees from the title company on top of the closing fee.

Oregon: Not an attorney state. No transfer tax (prohibited by state constitution since 2009). Title insurance is unregulated. Watch for: inflated title premiums (with no transfer tax, title costs are the main variable), and excessive escrow fees.

Texas: Not an attorney state (title companies handle closings). No transfer tax at any level — a significant cost advantage. Title insurance rates are promulgated by TDI and updated March 2026 (Order 2025-9697). Watch for: any title insurance charge that doesn't exactly match the TDI rate calculator, any 'title search' fee (the search is included in the title insurance premium in TX), and excessive lender fees. Simultaneous issue lender's policy must be exactly $100 per Rule R-5.

Utah: Not an attorney state. No state transfer tax. Title insurance is unregulated. Watch for: inflated title premiums, and excessive 'closing' or 'settlement' fees.

Washington: Not an attorney state. Real Estate Excise Tax (REET) is tiered: 1.1% on first $525K, 1.28% on $525K-$1.525M, 2.75% on $1.525M-$3.025M, and 3% above $3.025M. Many cities add local REET. Title insurance is unregulated. Watch for: inflated title premiums, REET calculated on the wrong tier, and excessive 'escrow' fees. Seattle's local REET adds 0.5%.

Wyoming: Not an attorney state. No transfer tax. Title insurance is unregulated. Watch for: inflated premiums in a very small market with minimal competition, and excessive 'abstracting' or 'title search' fees.

District of Columbia: Not an attorney jurisdiction (settlement agents handle closings). Recordation tax of 1.1% (residential under $400K) to 1.45% (above $400K) on buyer, plus transfer tax of 1.1% to 1.45% on seller — among the highest combined rates in the nation. Title insurance is unregulated. Watch for: inflated title premiums, excessive settlement agent fees, and transfer/recordation tax calculated at the wrong rate tier.

Regardless of where you're buying, these five charges appear on Closing Disclosures nationwide and should always be questioned:

• Document preparation fee ($75-$600) — duplicative of origination in virtually all cases. Ask for removal.
• Processing fee ($200-$900) when charged alongside an origination fee — you're paying twice for the same work.
• Courier/delivery fee ($25-$100) — most closings are electronic. Ask whether anything was physically couriered.
• Wire transfer fee above $30 — actual cost is $10-$15. Request reduction or pay by cashier's check.
• Tax service fee above $100 — this is an automated property tax monitoring service. $50-$75 is the correct range.