Who Pays For What?

A major question in every escrow is: “Who pays for what?” The answers vary by county ordinances and standard practices. What is listed below are “customary” practices. All fees charged are governed by terms of the sales contract and other written escrow instructions. Note: on some FHA, VA or other government-backed loans, the buyer will pay some fees that governmental regulations will not allow you to pay.

Seller’s Generally Pay:

Real estate commission
Document transfer tax ($1.10 per $1,000 of sales price)
Notary fees
Property tax proration (to date of acquisition)
Special delivery/courier fees, if required
Document preparation fees
Document recording charges
Homeowner’s association statement fee and prorata dues
Home warranty (according to contract)
Work/repairs required (according to contract)
Matters of record against the property or seller (loans, tax liens, judgments, etc.) and fees required to clear them (statement fees, reconveyance/trustee fees and prepayment penalties)
Bonds and assessments (according to contract)

Buyer’s Generally Pay:

Title insurance policy premiums (lender’s and buyer’s)
Escrow fees
Notary fees
Property tax proration (from acquisition date)
Special delivery/courier fees, if required
Document preparation fees
Document recording charges
Homeowner’s association transfer fee and prorata dues
City costs
Home warranty (according to contract)
Inspection fees (according to contract)
Matters of record against the buyer including tax liens, judgments and fees required to clear them
Fire insurance premium for the first year
Assumption/change of records fees if the buyer is taking over an existing loan
Lender’s new loan charges
Interest on new loan from date of funding to 30 days prior to the first payment
Other prorations (rents, insurance etc.) if applicable