DRC Texas - Diversified Realty Consultants, LLC
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Who Pays For What?

Who Pays For What?
August 29, 2016 Haley Page

When preparing to close on a property there are several costs involved in addition to the sales price.  Here is a Closing Fee Reference Guide.  Keep in mind; these can vary depending on the specific contract and parties involved.

The Buyer Normally Pays For:

  • One-half of the escrow fee (according to contract)
  • Lender’s title policy premiums and fees for endorsements to lender’s title policy. Document preparation (if applicable)
  • Tax pro-ration (from date of acquisition)
  • Recording charges for all documents in buyers’ names
  • Home Owner’s insurance premium for the first year
  • Home Warranty (according to contract)
  • Inspection fees (according to contract): roof, property, geological
  • All new loan charges (except those required by lender for seller to pay) Interim interest on new loan from date of funding to first payment date Homeowner Association transfer fee (according to contract)

The Seller Normally Pays For:

            One-half of the escrow fee (according to contract)

  • Work orders (according to contract)
  • Owner’s title insurance premiums
  • Real estate commissions
  • Any judgments, tax liens, etc. against the seller
  • Any unpaid HOA dues
  • HOA Resale Disclosure fees and a portion of any HOA transfer fee (according to contract) Any bonds or assessments (according to contract)
  • Home Warranty (according to contract)
  • Any loan fees required by the buyer’s lender (according to contract)Recording charges to clear all documents of record against seller
  • Payoff of loans in seller’s name (or existing loan balance being assumed by buyer) Interest accrued to lender being paid off, reconveyance fees and pre-payment penalties

It is important to speak with your lender about their costs that will be charged for loan origination and whether you should ask for any seller concessions to help you at closing.