WHO PAYS FOR WHAT?

One of the most frequently asked questions answered by Kimber!

 

Generally buyers and sellers pay customary fees upon the sale of a home. Below is a list of common fees and who pays for what:

 

The Seller Generally Pays For:

The payoff of all loans in the seller’s name if it is not being assumed by the new buyers

Interest accrued to lender that is being paid off, statement fees, reconveyance fees, and

any prepayment penalties

 

- The real estate agent commission                                      - Document preparation fee for deed

- Document transfer tax                                                          - Any city transfer or conveyance tax

- Termite inspection                                                                - Home warranty

- Any judgments, tax liens against the seller                      - Tax proration for any property taxes unpaid

- Any unpaid homeowner’s dues time of transfer              - Any bonds or assessments                                         

- Notary fees                                                                             - Any and all delinquent taxes                                                   

- One half of escrow fees                                                         - Title insurance premium for owner’s policy

- Recording charges to clear all documents of  record against seller 

 

 

  Closing Costs

K I M B E R ’ S  C H E C K L I S T  F O R

 

COMMISSION

If a home is listed with an agent, the seller will have a commission to pay. Always make sure it is

calculated correctly in the closing statement.

 

TAXES

The seller is required to pay a portion of property taxes through the last day of ownership; it will be

prorated. A refund will be issued if annual taxes have been paid in advance.

 

INSURANCE

Normally the buyer gets a new policy. If they decide to take over the seller’s existing policy

there should be a refund to the seller for the amount of the policy remaining.

 

ASSESSMENTS AND LIENS

Any time there are liens or assessments against individuals and/or the property, they will need to

be paid-off before the close of escrow. This could be a back tax lien or judgment. Always make

sure to double-check the figures so that these are not overpaid.

 

ESCROW AND TITLE INSURANCE

Customarily, the seller pays the “owner’s policy” of title insurance which protects the buyer’s

interest as owner of the new property. The buyer customarily pays for the “lender’s policy” which

protects the lender’s interest, as cost for obtaining a new loan. Also each party to the escrow typically pays their own escrow fees.

 

INSPECTION AND MISCELLANEOUS FEES

There are many kinds of inspection and miscellaneous fees that you could end up paying.

Be careful to check all charges on your closing statement. While the responsibility for paying

certain costs have been established by tradition and custom, they are generally not established by

law and can often be negotiated. Make sure the service was completed or provided before you

agree to pay for it. Make sure the charges are fair and not excessive. The time to determine who

pays what is BEFORE you sign the escrow instructions. Once you have signed, you have

agreed. The instructions cannot be changes unless mutually agreed to by all parties in writing.

Fees will vary, so be sure to check them carefully. This list will give you an idea of what the closing costs could be – not necessarily the specific amounts.

* ALL INFORMATION IS DEEMED RELIABLE BUT NOT GUARANTEED TO BE ACCURATE.