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.
- 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.