Buyer and Seller Closing Cost
Buyer and Seller Closing Cost
Buyer and Seller Closing Cost
One very common question of real estate transactions is, “Who pays for what?” Below is a list to give you an idea of some of the common expectations.
Also, being a “buyer’s market” or a “seller’s market” could possibly change the common fee responsibility. The distinction between personal property and real property can be the source of serious difficulties in a real estate transaction.
A purchase contract is normally written to include all real property, that is, all features of the property that are fastened down or are an integral part of the structure. For example, this would include light fixtures, drapery rods, attached mirrors, trees and shrubs in the ground. It would not normally include potted plants, free-standing refrigerators,washers/dryers, microwaves, bookcases, swag lamps, etc. If there is any uncertainty whether an item is included in the sale or not, it is best to be sure that the particular item is mentioned in the purchase agreement as being included or excluded.
The SELLER could generally be expected to pay for the following:
Escrow Fee
Notary Fee
Real Estate Commission
Documentary transfer tax
City Transfer/Conveyance Tax (according to contract)
Payoff of all loans in seller’s name (unless being assumed by buyer)
Interest accrued to lender being paid off, statement fees, re-conveyance fees and any prepayment Penalties
Termite Inspection (according to contract)
Termite Work (according to contract)
Home Warranty (according to contract)
Any judgments, tax liens, etc., against the seller tax proration (for any taxes unpaid at time of transfer of title)
Any unpaid Homeowner’s Association Fees
Homeowner’s Association Transfer Fee
Title Insurance Premium (Owners policy)
Recording charges to clear all documents of record against seller
Any bonds or assessments (according to contract
The BUYER could generally be expected to pay for the following:
Title Insurance Premium (Lenders policy)
Escrow Fee
Notary Fee
Document preparation (if applicable)
Recording charges for all documents in buyer’s name
Tax proration (from date of acquisition)
All new loan charges (except those required by the lender for seller to pay)
Interest on new loan from date of funding to 30days prior to first payment date (or, more understandably, from date of funding to the end of that month)
Inspection Fees (roofing, property inspection,geological, etc.)
Home warranty (according to contract)
Fire insurance Premium for first year (+ 2 months)
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