Buying and selling real estate comes with costs and fees for various items. What is stipulated in the purchase contract, and what is regulated by the state, determines who pays which closing costs.
The buyer generally will pay for:
Lender’s title policy premium, if new loan
Escrow fee, one half
Document preparation, if applicable
Notary fees, if applicable
Recording charges for all documents in buyer(s’) names
Homeowner’s association transfer fee, one half
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/change of records fees for takeover of existing loan
Beneficiary statement fee for assumption of existing loan
Home warranty premium per contract
Hazard insurance premium for first year
All pre-paid items, such as interest or funds for an escrow account
The seller generally will pay:
Owner’s title insurance premium
Real estate agent’s commission
Escrow fee, one half
Any loan fees required by buyer(s’) lender per contract
All loans in seller’s name (unless existing loan balance is being assumed by buyer)
Interest accrued on loan being paid off, statement fees, reconveyance fees and any prepayment penalties
Termite inspection and any termite repairs per contract
Home warranty premium per contract
Homeowner’s association transfer fee, one half
Any judgments, tax liens, etc., against the seller
Recording charges to clear all documents of record against seller
Property taxes: pro-rated to date title is transferred plus any delinquent taxes
Any unpaid homeowner’s association dues
Any bonds or assessments per contract
