Common Closing Costs
A common question in every escrow process is: “Who pays for what?” The answers vary by county ordinances and standard practices. Listed below are “customary” practices. All fees charged are governed by terms of the sales contract and other written escrow instructions. Before you enter any transaction we can provide you with a ‘net sheet’. This sheet will outline the costs you are responsible for. These costs will give you an idea of what you’re responsible for.
Buyer Generally Pays:
- Title insurance policy premiums (lender’s and Buyer’s)
- Escrow fees
- Notary fees
- Property tax proration (from acquisition date
- Special delivery/courier fees, if required
- Document preparation fees
- Document recording charges
- Homeowner’s association transfer fee and prorata dues(if applicable)
- City costs
- Home warranty (according to contract)
- Inspection fees (according to contract)
- Matters of record against the buyer including tax liens, judgments and fees required to clear them
- Fire insurance premium for the first year
- Assumption/change of records fees if the buyer is taking over an existing loan
- Lender’s new loan charges
- Interest on new loan from date of funding to 30 days prior to the first payment
- Other prorations (rents, insurance etc.) if applicable
Seller Generally Pays:
- Real estate commission
- Document transfer tax ($1.10 per $1,000 of sales price)
- City transfer tax
- Notary fees
- Escrow fee
- Property tax proration (to date of acquisition)
- Special delivery/courier fees, if required
- Document preparation fees
- Document recording charges
- Homeowner’s association statement fee and prorata dues(if applicable)
- Home warranty (according to contract)
- Work/repairs required (according to contract)
- Matters of record against the property or seller (loans, tax liens, judgments, etc.) and fees required to clear them (statement fees, reconveyance/trustee fees and prepayment penalties)