Who Pays For What? Buyers and Sellers


Listed below are the traditional distribution of expenses associated with a purchase of real estate. However, many of these items can be negotiated by both parties at the time of the offer, excluding some expenses required by the lender to be paid specifically by seller.  Please contact Laxson Associates if you would like a detailed cost itemization for either a specific purchase or sale price.

BUYER USUALLY PAYS FOR:

 
  • Escrow fees (50/50)
  • Document preparation (if applicable)
  • Notary fees
  • Recording charges for all documents in buyer´s name
  • Termite inspection (according to contract)
  • Tax proration (from date of acquisition)
  • Homeowner´s transfer fee
  • 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 take-over of existing loan
  • Beneficiary Statement fee for assumption of existing loan
  • Inspection fees (roofing, property inspection, geological, etc.)
  • Home Warranty (according to contract)
  • Lender´s policy
  • Fire insurance premium for first year
    • SELLER USUALLY PAYS FOR:

     
  • Real estate commission
  • Escrow fees (50/50)
  • County documentary transfer tax ($1.10 per $1,000 of consideration)
  • Applicable city transfer/conveyance tax (according to contract)
  • Document preparation fee for deed
  • Any loan fees required by buyer´s lender
  • Payoff of all loans in seller´s name (or existing loan balance if buyer assumption) 
  • Interest accrued to lender being paid off
  • Statement fees, reconveyance fees and any prepayment penalties
  • Termite inspection (according to contract)
  • Termite work (according to contract)
  • Home Warranty (according to contract)
  • Any judgments, tax liens, etc., against the seller
  • Tax proration (for any taxes unpaid at time of transfer of title)
  • Any unpaid homeowner´s dues
  • Recording charges to clear all documents of record against seller
  • Any bonds or assessments (according to contract)
  • Any and all delinquent taxes
  • Notary fees - escrow fee
  • Title insurance premium: Owner´s Policy
    • THE PERSONAL VS. REAL PROPERTY DILEMMA - YOURS OR THEIRS 

    The distinction between personal property and real property can be the source of difficulties in a real estate transaction.  A purchase contract is normally written to include all real property; that is, all aspects of the property that are fastened down or an integral part of the structure.  For example, this would include light fixtures, drapery rods, attached mirrors, trees and shrubs in the ground.  It would not include potted plants, free-standing refrigerators, washer/dryers, free-standing microwaves, bookcases, swag lamps, etc.  If there is any uncertainty whether an item is included in the sale or not, it is best to be sure that the particular item is mentioned in the purchase agreement as being included or excluded.

    For a Buyer or Seller Closing Costs estimate, please contact Laxson Associates.