Buyer’s Responsibility for Primary Closing Costs
In most industrial land transactions, the buyer typically bears the majority of closing costs, which include:
- Stamp duty and registration charges as per state government rates (usually 5–7% of the sale value)
- Title due diligence fees, including legal vetting and document review
- Title insurance premium, if the buyer chooses to protect against defects or claims
- Survey and demarcation expenses, where boundary validation or re-measurement is required
- Applicable GST, if the sale involves transfer of developed land or built infrastructure
These costs are accounted for during financial planning and are often payable at or before registration.
Seller’s Obligations in Transaction Execution
The seller is usually responsible for:
- Providing clear and marketable title without encumbrances
- Furnishing original ownership documents and prior chain of title
- Settling dues or taxes (property tax, development charges, or lease premiums) up to the date of closing
- Bearing the cost of any rectification deed or mutation-related affidavits if title discrepancies exist
- Paying any brokerage fees if the seller engaged a real estate advisor for marketing
If the seller delays documentation or has pending approvals, additional costs may shift in their direction through contractual provisions.
Shared or Negotiated Transaction Fees
Some transactional fees are negotiated or shared, depending on deal size, urgency, or mutual agreement, including:
- Escrow setup or legal documentation fees, especially in high-value institutional deals
- Consultancy or facilitation charges involving development authorities or land aggregators
- Costs related to zoning verification, layout modification, or government liaison services
- Notarization, attestation, or courier fees for multi-party or cross-jurisdictional deals
The final allocation of these expenses is typically outlined in the sale agreement or memorandum of understanding (MoU), ensuring clarity and fairness before execution.