Who Pays for What at Closing?
The seller can normally be expected to pay for the following:
- Real estate commission.
- Owner’s title-insurance premiums.
- Payoff of all loans in seller’s name.
- Any judgments, tax liens, etc., against the seller.
- Recording fees to clear all documents of record against the seller.
- Tax pro-ration. This is for any unpaid taxes at the time of transfer of title.
- Any unpaid homeowner-association dues.
- Any assessments according to the contract.
- Any and all delinquent taxes per the contract.
- State real estate tax fee.
- New approval of well, septic, survey according to the contract.
- Half of the document-preparation fee.
The buyer can normally be expected to pay for the following:
- Lender’s title-policy premium—American Land Title Association (ALTA).
- Half of escrow fee.
- Recording charges for all documents in buyers’ names.
- All new loan charges.
- Interest on a new loan from date of funding to 30 days prior to first payment date.
- Home warranty according to contract.
- Fire-insurance premium for the first year.
- Home inspection.
- Reserve account for taxes, association dues and insurance.
- Flood-certification fee.
There are some mandatory costs:
Both FHA and VA require that the seller must pay for document preparation, tax service, warehousing, and loan-review fee (if any).
VA: 100% of escrow closing fee.