Who Pays For What? Closing costs can add up when buying a home. Termite inspections, home warranty, title insurance, etc…The fees included in a transaction are negotiated at the time of the offer. But here is a list of how expenses are traditionally distributed.
SELLER GENERALLY PAYS FOR:
• County documentary transfer tax(55 cents per $500 of consideration)
• Applicable city transfer/conveyance tax(according to contract)
• Document preparation fee for deed
• Any loan fees required by buyer’s lender(FHA & VA loans in some cases)
• Payoff of all loans in seller’s name
• Interest accrued to lender being paid off and any prepayment penalties
• Termite inspection
• Termite work(normally section 1 work according to contract)
• Home warranty(according to contract)
• Any judgments, tax liens, etc.. against the seller
• Tax pro-ration(for any taxes unpaid at time of transfer of title)
• Any unpaid homeowner’s dues
• Recording charges to clear all documents of record against seller
• Any bonds or assessments(according to contract)
• Any and all delinquent taxes
• Notary fees
• Title insurance premium: Owner’s policy
• Escrow fees
• Agents Brokerage Fees
BUYER GENERALLY PAYS FOR:
• Document preparation
• Notary fees
• Recording charges for all documents in buyer’s name
• Tax pro-ration(from date of acquisition)
• Homeowner’s transfer fee
• All new loan charges
• Interest on new loan from date of funding to first payment date
• Assumption/Change of Records fees for take over of existing loan(if applicable)
• Beneficiary Statement fee for assumption of existing loan(if applicable)
• Inspection fees(property inspection, roof, geological, etc..)
• Lender’s Title policy
• Escrow fees
• Fire insurance premium for first year
Again, these are traditional distribution of expenses associated with a sale. Your real estate agent and/or escrow company can give you a detailed “estimated closing statement” prior to the close of escrow.
Posted In Real Estate
This entry was posted on Friday, January 1st, 2010 at 11:13 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.