Ever wonder who pays for what when it comes to closing costs?
The Lawhead Team would like to share a great article from Christy Cimino with Equity Title about closing costs and who pays for what:
The SELLER Can Generally Be Expected To Pay For The Following Closing Costs:
- “Owner’s” title insurance policy premium
- Escrow fee
Real estate commission- Document preparation fee for deed
- Documentary transfer tax (typically $1.10 per $1,000.00 of sales price)
- City transfer or conveyance tax (defined by contract)
- Any loan fees required by buyer’s lender (FHV,VA)
- Payoff 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 prepayment penalties
- Termite work (defined by contract)
- Home warranty (defined by contract)
- Any judgments, tax liens, etc., against the seller
- Tax proration (for any taxes unpaid at time of transfer of title)
- Any unpaid homeowner’s dues
- Recording charges to clear all documents of record against seller
- Any bonds or assessments (defined by contract)
- Any and all delinquent taxes
- Notary fees
- Homeowner’s transfer fee
- Messenger fees (if applicable)
The BUYER Can Generally Be Expected To Pay For The Following Closing Costs:
- “Lender’s” title insurance policy premium
- Escrow fee
- Document preparation (if applicable)
- Notary fees
- Recording charges for all documents in buyer’s name
- Termite inspection (defined by contract)
- Tax proration (from 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
- Assumption or change of records fee for takeover of existing loan
- Beneficiary statement fee for assumption of existing loan
- Inspection fees (roofing, property inspection, geological, etc.)
- Home warranty (defined by contract)
- City transfer or conveyance tax (defined by contract)
- Fire insurance premium for the first year
- Messenger fees (if applicable)
Please Note: All of the Sellers and Buyers Closing Costs listed are negotiable and are defined by the contract between the two parties.
