Curious about the distribution of expenses when real estate is bought and sold? Here’s a handy list! (Keep in mind, many of these items can be negotiated by both sides.)

 

Buyer usually pays:

 

All new loan charges (except those required by lender for seller to pay)

Assumption/Change of Records fees for take-over of existing loan

Beneficiary statement fee for assumption of existing loan

Document preparation

Escrow fees

Fire insurance premium for first year

Home Warranty (according to contract)

Homeowner’s transfer fee

Inspection fees (roofing, property inspection, geological, etc)

Interest on new loan from date of funding to 30 days prior to first payment date

Lender’s policy

Notary fees

Recording charges for all documents in buyer’s name

Tax proration (according to contract)

Termite inspection (according to contract)

 

Seller usually pays:

 

Any and all delinquent taxes

Any bonds or assessments (according to contract)

Any judgments, tax liens, etc., against the seller

Any loan fees required by buyer’s lender

Any unpaid homeowner’s dues

Applicable city transfer/conveyance tax (according to contract)

County documentary transfer tax (55 cents per $500 of consideration, exclusive of the value of any lien or encumbrances attaching to the property at time of sale)

Document preparation fee for deed

Escrow fees

Home warranty (according to contract)

Interest accrued to lender being paid off

Notary fees – escrow fee

Payoff of all loans in seller’s name (or existing loan balance if being assumed by buyer)

Real estate commission

Recording charges to clear all documents of record against seller

Statement fees, reconveyance fees, and any prepayment penalties

Tax proration (for any taxes unpaid at time of transfer of title)

Termite inspection (according to contract)

Termite work (according to contract)

Title insurance premium: Owner’s policy

 

I hope you found the article useful.  Give me a call if you have any questions.