Closing Costs… Who Pays for What?

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The buyer can generally be expected to pay for:

  • Title Insurance premiums (ALTA Loan Policy)
  • Escrow fees
  • Escrow loan tie-in fee
  • Document preparation (if applicable)
  • Notary fees
  • Recording charges for all documents in buyer’s name
  • Termite inspection (according to contract)
  • Tax proration (from date of acquisition)
  • All new loan charges (except those required by lender for seller to pay)
  • Assumption/Change of Records fees for take-ever of existing loan
  • Beneficiary Statement fee for assumption of existing loan
  • Inspection fees (roofing, property inspection, geological, etc.)
  • Home warranty (according to contract)
  • City transfer/conveyance tax (according to contract)
  • Fire insurance premium for first year
  • Buyer’s portion of sub-escrow fee

The Seller can generally be expected to pay for:

  • Standard CLTA Owner’s Title Insurance
  • Real Estate Commission
  • Escrow fees
  • Notary fees
  • Demand fees
  • Document preparation fee for the deed
  • Documentary transfer tax
  • Applicable city transfer/conveyance tax
  • Any bond or assessments (according to contract)
  • Any FHA or VA loan fees required by Buyer’s lender
  • Payoff of all loans in seller’s name (or existing loan balance if being assumed by buyer)
  • Interest accrued to lender being paid off. Statement fees, reconveyance fees and any prepayment penalties
  • Termite inspection (according to contract)
  • Termite work (according to contract)
  • Any judgments, tax liens, etc., against the seller
  • Tax proration (for any taxes unpaid at time of transfer of title)
  • Recording charges to clear all documents of record against seller
  • Any bonds or assessments (according to contract)
  • Tax proration (for any taxes unpaid at time of transfer of title)
  • Seller’s portion of sub-escrow fee
  • Homeowner’s transfer fee contract)
  • Any and all delinquent taxes
  • Any unpaid homeowner’s dues
  • Home warranty (according to contract)