Real Estate Costs and Responsibilities
Clients often question who is reponsiblite for fees incurred during a real estate transaction. The following is a typical list of real estate costs and the party typically reponsibile for payment.
The seller most often pays these real estate costs:
Document preparation fee for deed
Documentary transfer tax ($4.00 per $1000 of sale)
Recording charges to clear all documents of record against seller
Real estate commission
Abstract update or Title insurance premium for owner's policy
Interest accrued to lender being paid off, statement fees, reconveyance fees and any prepayment penalties
Payoff of all loans in seller's name (or existing loan balance if being assumed by buyer)
Tax proration (for any taxes unpaid at time of transfer of title)
All delinquent taxes, interest and penalties
Any judgments, tax liens, etc. against the seller
The buyer most often pays these real estate costs:
All new loan charges (except those agreed upon by seller to pay)
Document preparation (if applicable)
Recording charges for all documents in buyer's name
Inspection fees (property inspection, roofing, pest, structural, etc.)
Interest on new loan from date of funding to 30 days prior to first payment date
Tax proration (from date of acquisition)
The first year's fire insurance premium