During any conversation I have with a buyer or seller, one question always arises…. Who pays for what? Here are some tips on what is generally traditional in who pays what in a real estate transaction:
Items the Seller can generally be expected to pay for:
- Real Estate Commission
- Escrow Fees or Attorney Fees / Notary Fees
- County documentary transfer tax
- Title Insurance policy for buyer
- Document preparation fee for deed
- Any loan fees required by buyer’s lender
- Payoff of all loans in seller’s name
- Interest accrued to lender being paid off
- Statement fees, reconveyance fees and any prepayment penalties
- Termite inspection and work (according to contract)
- Home Warranty (according to contract)
- Any judgments, tax liens, etc. against the seller
- Homeowner’s Association transfer fee
- Any unpaid homeowner association dues
- Tax proration (taxes unpaid at time of transfer of title)
- Recording charges to clear all documents of recoard against seller
- Any bonds or assessments (according to contract)
The Buyer can generally be expected to pay for:
- Escrow Fees or Attorney Fees
- Documentation preparation (if applicable)
- Notary Fees
- Recording charges for all documents in buyer’s name
- Tax proration (fram date of acquisition)
- All new loan charges (except those required by lender for seller to pay)
- Interest on new loan from date of funding to 30 days prior to first payment date
- Inspection Fees (property inspection, roofing, geological, etc)
- Home Warranty (according to contract)
- Lender’s policy of title insurance
- Fire insurance premium for first year.
Items may vary by region or negotiation. Have your agent go over the specifics of your transaction and the costs associated with it.
Posted in Home Buying Tips, Home Selling Tips
