Who pays what?

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:

The Seller Generally Pays:

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