Page 12 - Home Buyer Guide

12
BUYER’S HANDBOOK - WHO PAYS FOR WHAT

WHO PAYS FOR WHAT

Although the question of who pays for various closing costs is negotiable between the buyer and seller, the following is a standard
breakdown of how responsibility for costs is typically divided.

Closing costs are the various charges made by the lender, the title company, real estate agents, and other service providers
necessary to complete a transaction.

THE SELLER CUSTOMARILY PAYS: THE BUYER CUSTOMARILY PAYS:

• Real estate commission • Notary fees
• County and city transfer tax • Title and Escrow fees
• Document preparation for deed
• Contractor’s and buyer’s inspection fees
• Documentary transfer tax (amount is dependent upon sales
price) • All new loan charges (points, appraisal, document
• Payoff of all loans against the property processing fees, etc.)
• Interest accrued on loans being paid off, re conveyance • Interest on new loan from date of funding to 30 days prior
• Fees and pre-payment penalties to the 1st payment date

• Home warranty (if specified in contract) • Home warranty (if specified in contract)
• Any judgment or tax liens against seller • Homeowner’s insurance for 1st year
• Property tax proration
• Earthquake insurance (optional)
• Unpaid homeowner’s dues (for condominiums) Bonds or
assessments • Private mortgage insurance (typically 2 months) if required
• Delinquent taxes by lender
• Move-out fees (for condominiums) • Private mortgage insurance impound account (1 year) if

• Notary fees and recording fees required by lender
• Third party Natural Hazard Disclosure Statement • Property tax impound account if required by lender
• Pre-sale inspection fees
• Miscellaneous charges
• Miscellaneous charges
This list is a general guideline of charges and may not be
• HOA account transfer fee wholly inclusive for your transaction.