Navigating home buying/selling can be a daunting task. There are so many things to do and remember. A good Realtor will help you make sense of all the steps. But what are some general expectations? Here’s a handy list to help you figure out who pays for what in the home buying/selling experience.
The Seller can generally be expected to pay for:
- Title insurance premium
- Escrow fee
- Real Estate Commission
- Document preparation fee for deed
- Documentary transfer tax and any city transfer or conveyance tax
- Interest accrued to lender being paid off, statement fees, reconveyance fee, and prepayment penalties
- Termite inspection (according to contract)
- Home warranty (according to contract)
- Any judgements, tax liens, etc., against the seller
- Tax proration (for any taxed unpaid unpaid at time of transfer or title)
- Any unpaid homeowner’s duties
- Recording charges to clear all documents of record against the seller
- Any bonds or assessments (according to contract)
- Any and all delinquent taxes
- Notary fees
- Transaction Coordinator Fee
The Buyer can generally be expected to pay for:
- Title insurance premium
- Escrow fee
- 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)
- All new loan charges (except those required by seller to pay)
- Interest on new loan from date of funding to 30 days prior to first payment date
- Assumption or change of records fee for takeover of existing loan
- Inspection fees (roofing, property inspection, geological, etc.)
- Home warranty (according to contract)
- City transfer of conveyance tax (according to contract)
- Fire insurance premium for first year
- Transaction Coordinator Fee
* You’ve probably noticed that several items say “according to contract.” That means that the party paying depends on how the contract is drawn up.
Obviously, having someone that has extensive experience in contract negotiation work with you on your team will greatly benefit you. Choose wisely!
