WeSpeakRealEstate Blog

April 30, 2008

Buyer and Seller Who Pays What….


These are customary charges and in the case of FHA

(search for FHA info in our blog) loans “sellers” will have to pay

non-allowable buyer cost.  Many buyers request concessions

for closing cost.  A seller can credit a buyer with up to 3% of

purchase price for closing cost.  For FHA loan it can go up

to 6% closing cost.   In the case of seller’s competing with

bank own properties, these can be a plus for you.  Most

lender own properties and short sales will not allow for

such concessions.  



The Seller Generally Pays:


• Real estate commission

• Document preparation fee for deed

• 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 any preparation penalties

• Termite inspection (according to contract)

• 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


The Buyer Generally Pays:


• Title insurance premium

• 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 records fees for takeover of existing lon

• 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


The distinction between personal and real property can be the source of difficulties in a real estate transaction. A purchase contract is normally written to include all real property; that is, all aspects of the property that are fastened down or an integral part of the structure. For example, this would not include potted plants, free-standing refrigerators, washer/dryers, microwaves, bookcases, swag lamps,

etc. If there is any uncertainty whether an item is included in the sale or not, it is best to be sure that the particular item is mentioned in the purchase agreement as being included or excluded.


We invite you to our www.infobankrepo.com 

Want a good deal?  Let us help you.


Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: