Short answer: Hilton Head closing costs have a fixed part and a variable part. The fixed government fees are the Town of Hilton Head Island's 0.25% transfer fee (typically paid by the buyer), the state and county deed recording fee of $3.70 per $1,000 (the seller's by statute, SC Code 12-24-20), and flat recording fees of $15 per deed and $25 per mortgage. On a $900,000 home that's $2,250 plus $3,330 plus the flat fees. The variable part is the attorney's fee, title insurance, lender charges, community association fees, prorated taxes and dues, and insurance.
Key facts
- Town transfer fee: 0.25% of the price inside Town limits, typically paid by the buyer (Town of Hilton Head Island).
- Deed recording fee: $1.85 per $500 ($3.70 per $1,000); seller primarily liable (SC Code 12-24-10, 12-24-20).
- Flat recording fees: $15 per deed, $25 per mortgage (SC Code 8-21-310; Beaufort County Register of Deeds).
- Community fees: vary by community. Palmetto Dunes POA: 0.5% of price from the buyer and a $250 administrative fee from the seller (PDPOA, 2026).
- Attorney: South Carolina requires closings to be supervised by a licensed SC attorney (SC Supreme Court).
- Closing Disclosure: lenders must give it three business days before closing (Consumer Financial Protection Bureau).
- After closing: apply for 4% by January 15 of the next year, or notify the Assessor before January 31 for the 25% exemption on a 6% home.
Which closing costs are set by law?
Three government charges, all figured from the price or a flat amount. They're the same whoever your lender, attorney or agent is.
| Fee | Rate | Who pays by default | On a $900,000 home |
|---|---|---|---|
| Town of Hilton Head Island transfer fee | 0.25% of price (inside Town limits) | Buyer, typically | $2,250 |
| State and county deed recording fee | $1.85 per $500 | Seller (12-24-20) | $3,330 |
| Deed recording, flat fee | $15 per deed | Set by contract | $15 |
| Mortgage recording, flat fee | $25 per mortgage | Set by contract | $25 (if financed) |
So the government's share on a $900,000 sale is $2,250 for the buyer and $3,330 for the seller, plus $15 to $40 in flat recording fees, before anything the contract changes. Two things other sites get wrong here: the Town fee has no $1,000 alternative or cap, and the deed fee is the seller's by statute, not a buyer cost. Details are on the transfer fee and deed recording fee pages, and the closing-cost calculator works them out for any price.
What closing costs vary?
Everything else. We don't quote typical amounts because they depend on the price, the loan, the property and the providers you choose. Ask for written figures early.
- Closing attorney. Every South Carolina closing is supervised by an attorney, who handles the title search, documents, closing and recording. Get the fee in writing. See do I need an attorney.
- Title insurance. A lender can require a lender's title policy as a condition of the loan (SC Code 37-10-102); an owner's policy protects you. Premiums depend on the price and the insurer.
- Lender charges. Origination, appraisal, credit report and points. They're on your Loan Estimate and, three business days before closing, your Closing Disclosure.
- Community association fees. Transfer or enhancement fees, resale certificate or administrative fees, and sometimes capital contributions. They vary a lot by community. See community transfer fees.
- Prorations. The current year's property tax and any prepaid POA or regime dues are usually split between buyer and seller as the contract says.
- Insurance. Homeowners, wind (the whole island is in the state wind pool's territory) and, often, flood. If you finance, your lender will tell you which policies it requires before closing. See flood insurance.
- Inspections and survey. Home inspection, wood-destroying insect report and survey, paid as you order them.
What does a full example look like?
Here is a $900,000 villa in Palmetto Dunes, financed, inside the Town limits. The government and community fees are exact; the rest are left as items to get quotes for.
| Item | Buyer | Seller |
|---|---|---|
| Town transfer fee, 0.25% | $2,250 | |
| Deed recording fee, $3.70 per $1,000 | $3,330 | |
| Mortgage recording | $25 | |
| Palmetto Dunes Community Enhancement Fee, 0.5% | $4,500 | |
| Palmetto Dunes administrative processing fee | $250 | |
| Attorney, title insurance, lender, insurance, prorations | Get quotes | Per contract |
Palmetto Dunes POA publishes both fees on its attorneys and realtors page. The 0.5% fee alone is twice the Town's fee, which is why we check every community's fees before an offer. Other communities' fees aren't published in a form we can verify, so we get them from the association's resale documents for each property.
What should I do right after closing?
File for the tax treatment you qualify for. Missing either deadline costs thousands a year.
- If it's your legal residence, apply for the 4% ratio with the Beaufort County Assessor between January 1 of the tax year and January 15 of the next year. See 4% vs 6%.
- If it's a second home or rental, notify the Assessor that it will be taxed at 6% before January 31 of the first tax year, to get the 25% exemption. See point-of-sale reassessment.
- If you'll rent it for under 30 days, apply for your own Town short-term rental permit. The seller's permit doesn't transfer. See the short-term rental permit.
- Budget for the next tax bill on your price, not the seller's. Use the property tax calculator.
How we help
Before you offer, we'll confirm whether the home is inside the Town limits, request the community's resale documents and fee schedule, and give you a written estimate of the fixed fees so you can compare it with your lender's Loan Estimate. After closing, we'll remind you of the tax filing that fits how you'll use the home.
Questions
Are closing costs lower if I pay cash?
Yes, somewhat: there are no lender charges, no mortgage recording fee, and no required lender's title policy. The Town transfer fee, community fees and the attorney's fee still apply, and an owner's title policy is still worth asking about.
What does a seller pay at a Hilton Head closing?
By statute, the deed recording fee of $3.70 per $1,000 ($3,330 on $900,000). Sellers also typically pay any community fees assigned to them (Palmetto Dunes charges sellers $250), payoff of their mortgage, their share of prorated taxes and dues, and the brokerage compensation they agreed to.
Can closing costs be negotiated?
Who pays can be negotiated in the contract; the government rates can't. The 0.25% Town fee and $1.85 per $500 deed fee are fixed by ordinance and statute. Attorney, title, lender and inspection fees vary by provider, so you can compare them.
Sources
- Town taxes and fees, Town of Hilton Head Island (checked October 2026)
- SC Code Title 12 Chapter 24 (deed recording fees), SC Legislature (checked October 2026)
- Document recording, Beaufort County Register of Deeds (checked October 2026)
- Attorneys and realtors, Palmetto Dunes Property Owners Association (checked October 2026)
- Doe v. McMaster, Opinion No. 25508 (2003), Supreme Court of South Carolina (checked October 2026)
- Closing Disclosure explainer, Consumer Financial Protection Bureau (checked October 2026)