Who Pays For What in Home Sale?

“Selling your home may seem that simple but there are taxes, fees, insurance and other expenses that buyers and sellers must prepare for.

I compiled a list of the traditional distribution of expenses associated with real estate. Certain regions of the country and even within the State of Texas, vary in these customs. Keep in mind that many of these items are negotiable by both parties at the time of the offer, excluding some expenses required by the lender to be paid specifically by the seller.

The BUYER typically pays:

• Notary Fees
• Escrow Fees
• Document preparation (if applicable)
• Recording charges for all documents in buyer’s name
• Termite Inspection
• Tax Proration
• Homeowner’s transfer fee
• 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 take-over of existing loan
• Beneficiary Statement fee for assumption of existing loan
• Other Inspection fees (roofing, property inspection, geological, etc)
• Home Warranty
• Lender’s policy
• Fire Insurance Premium for first year

The SELLER typically pays:

• Real estate commission
• Escrow fees
• Notary fees
• Title Insurance Premium: Owner’s Policy
• Any bonds or assessments
• Recording changes to clear all documents of record against seller
• Any unpaid homeowner’s dues
• Tax proration (for any taxes unpaid at time of transfer of title)
• Any judgments, tax liens, etc. against the seller
• Home warranty
• Termite Work and Inspection
• Statement Fees, reconveyance fees, and any prepayment penalties
• Interest accrued to lender being paid off
• Payoff of all loans in seller’s name (or existing loan balance if assumed by buyer)
• Any loan fees required by buyer’s lender
• Document preparation fee for deed
• Applicable city transfer/conveyance tax
• County documentary tax (55 cents per $500 of consideration, exclusive of the value of any lien or encumbrances attaching to the property at time of sale)

This is pretty much the most comprehensive list of things I can think of. I also would like to know your experiences and if any, issues arising about who pays for what.”