Closing cost is a term that applies to the costs associated with selling or buying a home. They are paid every time you buy or sell a property. There are the seller's closing costs and there are the buyer's costs. Sometimes these costs become part of the negotiations, usually in the form of the seller paying some of the buyer's costs to defray the cost of the home, especially if it is a first time buyer in a lower priced home, since sometimes these buyer's are cash poor. Also, sometimes we lump things into the category of closing costs that aren't technically that. For example, some people consider the prorated taxes or a survey, or the agents fee closing costs. It is costs associated with selling or buying, but not technically closing costs. At closing, you will have to sign a form detailing all costs. Go back and find this from when you bought this house 3 years ago. It is a form with lots of little lines and columns. We call it a settlement or HUD. You should keep these forever, and you would have needed it for taxes. It should say HUD Settlement or something similar at the top and you and the seller and the agents/attorneys will have signed it. You will see that the seller has a side and the buyer has a side with all costs listed. Your Realtor or a title agent can help you understand it.