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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.
  • Appraisal.

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.