At closing, who pays for what?

Whether you're the buyer or the seller in a real estate transaction, there will be closing costs.  Who pays for what, is the big question.  In the following text you'll find the traditional distribution of expenses associated with a purchase of real estate.  Many of these items can be negotiated by either party at the time of the offer, excluding some expenses required by the lender to be paid specifically by the seller.

The buyer typically pays for:

• Escrow fees
• 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)
• Interest on new loan from date of funding to 30 days prior to first payment date
• Inspection fees (roofing, property inspection, geological survey, etc.)
• Home warranty (according to contract)
• Lender's policy
• Fire insurance premium for the first year

The seller typically pays for:

• Real estate commission
• Escrow fees
• County documentary transfer tax
• Applicable city transfer/conveyance tax (according to contract)
• Document preparation fee for the deed
• Any loan fees required by buyer's lender
• Payoff of all loans in seller's name
• Interest accrued to lender being paid off
• Statement fees, reconveyance fees and any prepayment penalties
• Termite inspection and/or repairs (according to contract)
• Home warranty (according to contract)
• Any judgments, tax liens, association liens, etc against the seller
• Tax proration (for any taxes unpaid at time of title transfer)
• Any unpaid HOA dues
• Recording charges to clear all documents of record against seller
• Any bonds or assessments(according to contract)
• Any and all delinquent taxes
• Notary fees
• Title insurance premium: Owner's policy

Remember, every deal stands on it's own.  This list is a guideline only and may vary from state to state.  Check with your local Realtor or Title Insurance Agency for a detailed "good faith estimate" of closing costs.