Who Pays For What In a Real Estate Transaction?

In a typical transaction, there are costs for both parties. Here is what is generally paid by each:

SELLER:

• Document preparation fee or deed

• Documentary transfer tax, if any 

• Payoff all loans in seller’s name with funds from transaction 

• Interest accrued to lender being paid off

• Statement fees, reconveyance fees, and any payment penalties

• Home warranty (according to contract)

• Any judgements, tax liens, etc. against the seller

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

• Any unpaid homeowner’s dues

• Recording charges to clear all document of recording against seller

• Any bonds or assessments (according to contract)

• Any and all delinquent taxes

• Seller notary fees

• Escrow fee (one half)

• Title insurance premium for Owner’s policy

• Homeowner’s transfer fee

• City transfer/conveyance tax (or according to contract) 

• Brokerage fee

 

BUYER:

• Title insurance premium for Lender’s policy

• Escrow fee (one half)

• Document preparation (if applicable)

• Buyer Notary fees 

• Recording Charges for all documents in buyer’s name

• Tax proration (from date of acquisition)

• 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 fee for takeover of existing loan

• Inspection fees (General, Sewer, Termite, Etc.)

•  Fire insurance premium for first year

 

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