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.