WHO PAYS WHAT?

The following is a breakdown of Seller and Buyer cost categories associated with a typical home-purchase transaction.  Please contact me if you would like a detailed cost itemization for either a specific purchase or sale price.

The SELLER can generally be expected to pay for:

  • Real Estate Fee

  • Document preparation fee for Deed

  • Documentary transfer tax ($1.10 per $1,000.00 of sales price)

  • Any City transfer/conveyance tax

  • Payoff of all loans in Seller's name

  • Interest accrued to lender being paid off, Statement Fees, Reconveyance Fees and any Prepayment Penalties

  • Termite Inspection

  • Termite Corrective Work (according to contract)

  • Home Warranty

  • Any judgements, tax liens, etc., against Seller

  • Tax proration (for any unpaid taxes at time of transfer of title)

  • Any unpaid Homeowner's dues

  • Recording charges to clear all documents of record against Seller

  • Any bonds or assessments

  • Any and all delinquent taxes

  • Notary Fees

  • Escrow Fee (50/50)

  • Title Insurance Premium

The BUYER can generally be expected to pay for:

  • Lender's Title Insurance Premium
  • Escrow Fee (50/50)
  • Document Preparation
  • Notary Fees
  • Recording charges for all documents in Buyer's names
  • Tax proration (from date of acquisition)
  • All new loan charges (except those required by lender for Seller to pay)
  • Interest on new loan from date of funding to 30 days prior to first payment date
  • Beneficiary Statement Fee for assumption of existing loan
  • Inspection Fees (roofing, property inspection, geological, etc.)
  • Fire Insurance Premium for year

YOURS OR THEIRS - THE PERSONAL VS. REAL PROPERTY DILEMMA

The distinction between personal property and real property can be the source of difficulties in a real estate transaction.  A purchase contract is normally written to include all real property; that is, all aspects of the property that are fastened down or an integral part of the structure.  For example, this would include light fixtures, drapery rods, attached mirrors, trees and shrubs in the ground.  It would not include potted plants, free-standing refrigerators, washer/dryers, microwaves, bookcases, swag lamps, etc.  If there is any uncertainty whether an item is included in the sale or not, it is best to be sure that the particular item is mentioned in the purchase agreement as being included or excluded.