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The determination of how closing costs are paid is primarily based on the agreement made between the parties involved in the transaction. This agreement is typically negotiated during the contract phase and can vary significantly from one transaction to another.

Closing costs may include various fees such as loan origination fees, title insurance, appraisal fees, and recording fees, among others. The parties can negotiate whether these costs will be borne by the buyer, the seller, or split between them. Since real estate transactions are often unique, the specific terms agreed upon will dictate who is responsible for which closing costs.

While statutes and customs may influence standard practices in specific jurisdictions or among different types of transactions, the agreement between the buyer and seller ultimately governs the allocation of closing costs. The other options, such as the customs or the seller's attorney's decisions, may provide some context but do not override the contractual agreement made by the parties involved.