Closing Costs – Who pays what?
Even though most costs in a real estate transaction can be negotiated between the buyer and seller, there are lots of costs that are traditionally paid by one party or the other.
The list I made should be helpful for you
The seller can generally be expected to pay:
- Owners policy of title insurance
- Home owners assn. inspection fee
- Real estate commissions
- Escrow fee (50%)
- Pay off all existing loans, liens, and encumbrances
- Termite work
- Taxes due and payable or back taxes
- Recording charges (50%)
- Overnight delivery fees
The buyer can generally be expected to pay:
- Lenders policy of title insurance
- Endorsement fees for title insurance
- Escrow fees for title insurance
- Escrow fees (50%)
- Impounds and interest on new loan
- All new loan changes {including appraisal, origination and discount fees, document preparation, etc. }
- Fire insurance premium for first year
- Courier fees
- Homeowners association dues required by the association for future months
The following items are costs involved in the transaction that are negotiable and there is no general tradition as to which party pays them:
- Termite inspection fee
- Home warranty
- Homeowners association transfer fees
Mandatory costs: FHA and VA regulations require that the seller pay the following fees in an FHA or VA transaction, if applicable: assignment fee, flood certification fee, bringdown endorsements, document preparation fees, photo/inspection fees, tax service contract, warehousing fees, or any other loan cost or charge except the following: prepaid interest, impounds on new loan, loan origination, loan discount fees or appraisal. In addition, on a VA transaction the seller is required to pay the entire escrow fee.
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