Who Pays For What At Closing?
While contracts for the purchase and sale of Real Estate may vary, who pays for what at closing time generally follows the outline below. When you are in doubt, and even if you aren't, it is best to check with your Realtor and your Loan Officer to make sure you clearly understand the costs associated with purchasing or selling a home.
The seller can normally be expected to pay for the following:
1. The Real Estate Commission
2. Half of the closing fee charged by the company handling the closing (generally the title company).
3. The payoff balance or all loans in the seller's name currently held on the property.
4. Fees, re-conveyance fees, and prepayment penalties, if any, associated with the seller's loans.
5. Home warranty if specified in the contract.
6. Any judgements, tax liens, etc. against the seller.
7. All recording fees to clear all documents of record against the seller.
8. Tax pro-ration for any unpaid taxes at the time of title transfer.
9. Any unpaid homeowner- or road association fees.
10. Any assesments according to the contract.
11. Any and all delinquent taxes per the contract.
12. Half of the real estate transfer tax fee.
13. Preparation of a new deed.
The buyer can normally be expected to pay for the following:
1. Title insurance policy premium.
2. Half of the closing fee.
3. Recording fees for all documents in the buyer's name.
4. All new loan charges (except those required of the seller by the lender.)
5. Interest on a new loan from date of funding to 30 days prior to the first payment date.
6. Any assumption/change-of-records fees for takeover of an existing loan.
7. Home warranty according to the contract.
8. Homeowner's insurance premium for the first year.
9. Home inspection.
10. Appraisal fee.
11. Reserve account for taxes and insurance.
12. Flood certification fee.
Your Realtor can prepare an estimate of closing costs for your purchase and your lender should have already provided you with a good faith estimate of all the costs involved with your loan and closing.
If you have questions or are ready to start your home search or list your home, please give us a call at 207-689-9880. You deserve to have the experts on your side.
The Tanya Busch Team, Keller Williams Realty Mid Maine