Settlement Costs - Who Pays What?
During the negotiation stage of the transaction,
a mutually agreed-upon date for closing is determined. Closing is when the buyer and
seller sign all the paperwork and pay the settlement fees, and the documents are
recorded. Settlement obligations vary widely due to specific contract language, local
laws and customs. Prior to closing, the closing agent (usually an escrow or title
company, or attorney) will complete a detailed settlement statement for both buyer
and seller. As your real estate broker, I can help you understand which of the
typical settlement fees apply to you.
The buyer pays:
One-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing
Document preparation fees
Recording and notary fees
Title search and title insurance
Local transfer taxes, if any
Repairs or inspections the buyer has agreed to pay for
The seller pays:
Brokerage commission (the sum or percentage of the sale price, previously agreed
upon by the seller and real estate agent
One-half of escrow or legal fees paid to the attorney or escrow company for
preparing the closing
Document preparation fees
Recording and notary fees
Title search and title insurance (paid by either the seller or the buyer)
Local transfer taxes, if any
Repairs or inspections the seller has agreed to pay for