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Who Pays For What

Are You Aware of Who Pays What?

The Seller Can Generally Be Expected to Pay for

  • Real estate commission
  • owners title insurance policy
  • 1/2 of sub-escrow fee
  • 1/2 of escrow fee
  • document preparation fee for deed
  • Documentary transfer tax
  • City transfer of conveyance tax
  • Loan fees required by buyer's (FHA/VA)
  • Payoff all loans in seller's name
  • Interests accrued to lender being paid off, statement fees, reconveyance fees and prepayment
  • Termite inspection (according to contract)
  • Home warranty (according to contract)
  • Any judgments, tax liens, etc., against the seller
  • Tax proration (for any taxes unpaid at closing)
  • Any unpaid homeowners dues
  • Recording charges to clear all documents of record against seller
  • Any bonds or assessments (according t contract)
  • Any and all delinquent taxes
  • Notary fees

The Buyer Can Generally Be Expected to Pay for

  • Lenders title insurance policy
  • 1/2 of sub-escrow fee
  • 1/2 of escrow fee
  • document preparation fee for deed
  • Notary fees
  • Recording charges for all documents in buyer's name
  • Termite inspection (according to contract)
  • Tax proration (for any taxes unpaid at the closing)
  • Homeowner's transfer fee
  • All new loan charges (except FHA/VA)
  • Interests on new loan from date of funding to 30 days prior to first payment date
  • Assumption or change of records fee on existing loan
  • Beneficiary statement for assumption of existing loan
  • Inspections fees (roofing, property, geological, etc.)
  • Home warranty (according to contract)
  • City transfer tax (according to contract)
  • Fire insurance premium for first year

Yours or Theirs - The Personal vs. Real Property Dilemma

The distinction between personal property and real property can be the source of difficulties in a real estate transaction. The purchase contract is normally written to include all real property; that is, all aspects of the property that are fastened down or an integral part of the structure. For example, this would include light fixtures, drapery rods, attached mirrors, trees, and shrubs in the ground. It would not include potted plants, freestanding refrigerators, washers and dryers, microwaves, book cases swag lamps, etc. If there is any uncertainty whether an item is included in the sale or not, it is best to be sure that the particular item is mentioned in the purchase contract as being included or excluded.