Who Pays for What at Closing?

The Seller can normally be expected to pay for the following:

 Real Estate Commission.

  • Owner’s title-insurance premiums.
  • Half of the escrow fee (except for VA loans, where the seller pays 100%).
  • Payoff of all loans in seller’s name.
  • Fees, re-conveyance fees, and prepayment penalties.
  • Home warranty according to the contract, if any.
  • Any judgements, tax liens, etc., against the seller.
  • Recording fees to clear all documents of record against the seller.
  • Tax pro-ration. This is for any unpaid taxes at the time of transfer of title.
  • Any unpaid homeowner-association dues.
  • Any assessments according to the contract.
  • Any and all delinquent taxes per the contract.
  • Appraisal.
  • State real estate tax fee.
  • Sales tax.
  • New approval of well, septic, and as-built survey (if required).
  • Re-inspection fee with appraiser or home inspector (as negotiated in contract).
  • Half of the document-preparation fee (unless VA or FHA loan; then the seller pays 100%).
The buyer can normally be expected to pay for the following:
  • Lender’s title-policy premium–American Land Title Association (ALTA).
  • Half of escrow fee (unless you are a verteran and getting a VA loan; then the seller pays 100%).
  • Recording charges for all documents in buyers names.
  • All new loan charges (except those required of the seller by the lender).
  • Interest on a new loan from date of funding to 30 days prior to first payment date.
  • Assumption/change-of-records fees for takeover of existing loan.
  • Home warranty according to contract.
  • Fire-insurance premium for the first year.
  • Home inspection.
  • Reserve account for taxes and insurance.
  • Flood-certification fee.
There are some mandatory costs:
  • Both FHA and VA require that the seller must pay for document preparation, tax service, warehousing, and loan-review fee (if any).
  • VA: 100% of escrow closing fee.

Leave a Reply

Your email address will not be published. Required fields are marked *