Your Guide to Real Estate Closing Costs

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