BUYER'S CLOSING COST

 

THIS list includes many typical closing costs and is intended to be viewed as sample information only. Some states and counties implement and divide costs differently among buyers and sellers. Most of the typical closing costs are listed below, however, other costs not listed here may apply to your particular situation.

 

In addition to the following charges, there are several miscellaneous charges you may find on your closing statement. You need to inspect these charges carefully and make sure the services were provided before you pay for it.

 

COMMISSION

The seller will have to pay commission fees to the real estate agents representing both the buyer and seller. Typically the commission is 6% of the total sale price of the home.

 

PROPERTY TAXES

The seller is responsible for the payment of property taxes until the last day of ownership.

 

HOMEOWNER'S INSURANCE

The buyer is responsible for purchasing a homeowner's policy prior to the close of escrow.

 

ASSESSMENT AND LIENS

Any assessments or liens on the property need to be paid and/or resolved before the close of escrow. Examples include tax liens or judgments, etc. This is the seller's responsibility.

 

TITLE INSURANCE

In California, it is customary for seller to pay for the owner's title insurance, and for buyer to pay for the lender's required title insurance.

 

ESCROW SERVICES

The buyer and the seller both will pay their own escrow fees.

 

PROPERTY INSPECTION FEE

The Buyer is typically responsible for the home inspection.

 

TERMITE INSPECTION

The seller is responsible for termite inspection.

 

TERMITE REMOVAL COSTS

The seller is responsible for termite repair in section 1.

The buyer is responisble for termite repiar in section 2.

 

DOCUMENT PREPARATION FEE

Both sellers and buyers might incur a documentation fee.

 

DEED RECORDING CHARGE

Typically the seller is responsible for government recording charge.

 

LOAN FEES (Origination, Discount, Appraisal, Credit Report, Mortgage Insurance, Assumption, Loan Doc, Loan Doc Notary...)

Buyer is responsible for the fees incurred from obtaining a home mortgage.

 

HOME WARRANTY

The selller typically pay for a 1 year home warranty for the buyer. 

 

NATURAL HAZARD REPORT

The seller is responsible for Natural Hazard Disclosure Report.

 

HOA TRANSFER FEE ( TRANSFER, DOC, COMMUNITY ENHANCEMENT)

It is customary in California for the seller to be reponsible for any HOA fees

incurred during the transfer.

 

CITY AND COUNTY TRANSFER FEE

It is customary for the seller to be  responsible for any county and/or city transfer fees.

 

 

Responsibility for the fees may be negotiable when you open escrow. Once again, these costs may or may not apply to your specific situation. Be sure to ask for a closing cost estimate (Estimated HUD) from the escrow company.

EXAMPLE CLOSING COST FOR BUYER

BASED ON $1,000,000 SALE PRICE WITH NEW LOAN

EXAMPLE CLOSING COST FOR BUYER

BASED ON $1,000,000 SALE PRICE WITH ALL CASH