Who Pays for What?
On these pages, you will find 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 the seller.
- Buyer Typically Pays For:
- Escrow fees
- 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 Typically Pays For:
- Real estate commission
- Escrow fees
- 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)
- 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 being assumed by buyer)
- 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
