Guide to Closing Costs – Who Pays What?

The Buyer Normally Pays For:
1. One-half of the escrow fee (according to contract)
2. Lender’s title policy premiums (ALTA)
3. Document preparation (if applicable)
4. Tax pro-ration (from date of acquisition)
5. Recording charges for all documents in buyer’s names
6. Fire insurance premium for first year
7. Home Warranty (if applicable)
8. Inspection fees (according to contract)
9. All new loan charges (except those required by lender for seller to pay)
10. Interim interest on new loan from date of funding to first payment date

The Seller Normally Pays For:
1. One-half of the escrow fee (according to contract)
2. Work orders such as repairs agreed upon in contract
3. Owner’s title insurance premiums
4. Real Estate commissions
5. Any judgments, tax liens, etc. against the seller
6. Any unpaid Homeowner Association dues
7. Home Warranty (according to contract)
8. Any bonds or assessments (according to contract)
9. Any loan fees required by buyer’s lender
10. Recording charges to clear all documents of record against seller
11. Payoff of all loans in sellers name
12. Interest accrued to lender being paid off, re-conveyance fees and prepayment penalties if applicable

Source: Ticor Title Company


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