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Who Pays For What?
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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.
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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)
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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
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