My clients often ask me who pays for which fees when selling or buying a house. Because this is such a common question and there seems to be so much confusion on the subject here is a list of who pays for what:
Real estate commission
Document preparation fee for Documentary transfer tax
Any city transfer/conveyance tax (according to contract)
Payoff of all loans in seller’s name (or existing loan balance if being assumed by buyer)
Interest accrued to lender being paid off, statement fees, reconveyance fees and prepayment penalties
Termite work (according to contract)
Any judgments, tax liens, etc., against the seller
Tax proration for any taxes unpaid at time of transfer of title
Any unpaid homeowner’s insurance
Recording charges to clear all documents of record against seller
Any bonds or assessments (according to contract)
Any and all delinquent taxes
Notary fees
Escrow fees
Title Insurance premium (Owner’s policy)
The Buyer Generally Pays:
Title insurance premium (Lender’s policy)
Escrow fee
Document preparation (if applicable)
Notary fees
Recording charges for all documents in buyer’s name
Termite inspection (according to contract)
Tax proration (from date of acquisition)
Homeowner’s transfer fee
All new loan charges (except those required by lender for seller to pay if applicable)
Interest on new loan from date of funding to 30 days prior to first payment date
Assumption/charge of record fees for takeover of existing loan
Inspection fees (roofing, property inspection, geological, etc.)
Home warranty (according to contract)
City transfer/conveyance tax (according to contract)
File insurance premium for first year
