Delaware Closing Costs for Buyers: How Much You'll Pay

Transfer tax in Delaware

No separate mortgage/recordation tax; the realty transfer tax above is the only ad valorem levy. Municipalities may also impose a local transfer tax in some incorporated towns (not modeled here); check the specific municipality.

Who pays: Split equally between buyer and seller by custom (per Stewart Title's Delaware Real Estate Practices reference and the Delaware Association of REALTORS); qualifying first-time homebuyers get a 0.5-percentage-point reduction to their share of the STATE portion only, on the first $400,000 of value, capped at a $2,000 benefit. Source

Worked example: On a $366,200 home in New Castle County (combined 4.0% rate), the total transfer tax is about $14,648, normally split evenly: about $7,324 from the buyer and $7,324 from the seller. A qualifying first-time buyer's share drops by about $1,831 (0.5% of $366,200, under the $2,000 cap), to about $5,493, because the whole price is under the $400,000 threshold the reduction applies to.

How much is title insurance in Delaware?

On a $366,200 home in Delaware, an owner's title policy costs about $1,498 and the lender's policy about $25 when both are issued together (the simultaneous-issue discount). The buyer customarily pays for the owner's policy and the lender's policy. Delaware uses a filed uniform rate: insurers file one rate schedule with the state, so premiums are the same from company to company and shopping only affects settlement fees. Premiums computed from Delaware Title Insurance Rating Bureau (DTIRB) Rating Manual, effective as amended through 09/01/2017 and approved by the Delaware Insurance Department (rates confirmed unchanged in later DTIRB filings referenced through the 04/01/2025 manual update; Sections 3.2, 3.6, and 3.12).

Who pays the owner's policy: buyer (purchaser), per Stewart Title's Delaware Real Estate Practices reference Source

DTIRB rates are mandatory and uniform for its member underwriters (Chicago Title, Commonwealth, Fidelity National, First American, Old Republic, Stewart, WFG, and others), making Delaware a filed-uniform (rate-bureau) state, not a filed-competitive one.

Delaware-specific buyer costs on a $366,200 home

These are the line items set by Delaware law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.

Do you need a closing attorney in Delaware?

Yes. A Delaware-licensed attorney must conduct the settlement, make the disbursements, and examine title. This is stated as a controlling requirement in Delaware Real Estate Practices (the title-industry state-practice reference compiled from Delaware bar/regulatory practice, distributed by Stewart Title). Source

Recording fees

Recording the deed costs $51 and the mortgage $48 at the New Castle County Recorder of Deeds. Fee schedule

Other Delaware specifics

• Delaware first-time homebuyer transfer tax reduction. A qualifying first-time homebuyer (no prior ownership interest in residential real property, intends to occupy as primary residence) gets their share of the STATE portion of the realty transfer tax reduced by 0.5 percentage points on the first $400,000 of property value, capped at a $2,000 benefit. It does not reduce the county or municipal portion.
• Delaware realty transfer tax return / Form 5403. Every deed presented for recording in Delaware must be accompanied by Form 5403. Non-resident sellers also face a separate estimated income-tax withholding on the gain (6.95% of the gain), collected at the time of recording, a seller-side cost, not a buyer cost, but it affects the closing table. Source

How much are closing costs in Delaware?

For a buyer, closing costs usually run 2% to 5% of the purchase price. On Delaware's median-priced home (about $366,200), that is roughly $7,324 to $18,310, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.

What closing costs include

Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Delaware transfer tax, plus prepaid property taxes and homeowners insurance.

Why Delaware closing costs vary

The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter. On the title, settlement and transfer-tax portion that varies most by state, Delaware ranks highest in the nation (about 3.06% of price in 2026), because its real estate transfer tax is among the heaviest anywhere.

How a rebate offsets Delaware closing costs

Buyer commission rebates are legal in Delaware. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $366,200 home, a 2% rebate is about $7,324, often enough to cover much of the closing bill.

See Delaware buyer rebates and how to get one →

Sources

• Delaware transfer tax statute
• Who pays the transfer tax
• Delaware Title Insurance Rating Bureau (DTIRB) Rating Manual, effective as amended through 09/01/2017 and approved by the Delaware Insurance Department (rates confirmed unchanged in later DTIRB filings referenced through the 04/01/2025 manual update; Sections 3.2, 3.6, and 3.12)
• New Castle County Recorder of Deeds recording fees
• Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price

Delaware figures last verified against official sources on September 11, 2026.