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Who Pays the Closing Costs?

Who Pays the Closing Costs?
Your contract and any applicable government regulations determine who pays which closing costs. Your professional real estate agent can explain these costs to you.

The Buyer generally will pay:

  • Lenders title policy premium, if new loan;
  • Escrow fee, one half;
  • Document preparation, if applicable;
  • Notary fees, if applicable;
  • Recording charges for all documents in Buyers names;
  • Homeowner's Association transfer fee, one half;
  • 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;
  • Assumption/change of records fees for takeover of existing loan;
  • Beneficiary statement fee for assumption of existing loan;
  • Home warranty premium per contract;
  • Hazard insurance premium for first year; and
  • All pre-paid items, such as interest, or funds for an escrow account

The Seller generally will pay:

  • Owner's title insurance premium;
  • Real estate agent's commission;
  • Escrow fee, one half;
  • Any loan fees required by Buyer's lender per contract;
  • All loans in Seller's name (unless existing loan balance is being assumed by Buyer);
  • Interest accrued on loan being paid off, statement fees, reconveyance fees and any prepayment penalties;
  • Termite inspection and any termite repairs per contract;
  • Home warranty premium per contract;
  • Homeowner's Association transfer fee, one half;
  • Any judgments, tax liens, etc., against the Seller;
  • Recording charges to clear all documents of record against Seller;
  • Property taxes: pro-rated to date title is transferred plus any delinquent taxes;
  • Any unpaid Homeowner's Association dues; and
  • Any bonds or assessments per contract

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