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Buyers and Sellers: Who Pays for What?

(On real estate purchases in Southern California)

The SELLER can generally be expected to pay for:

  • Real Estate Broker’s commission
  • Due and payable property taxes, bonds, assessment
  • Prorated taxes, interest, rent HOA dues (could be credit or debit)
  • Payoff of all loans, other liens and judgments of record against the property (except those to be assumed by Buyer) including, but not limited to: accrued interest, demand/statement fee, re-conveyance fee, forwarding fee, late fees/prepayment penalty, if any
  • Loan fees required by the Buyer’s Lender (specifically on FHA & VA loans)
  • Homeowner’s Association transfer fee, document fee and demand fee
  • Pest control inspection reports and cost for repairs
  • Home warranty plan
  • Title insurance premium for Owner’s Policy
  • Escrow fee (Seller’s portion)
  • Document preparation fee for Grand deed and other recordable
  • Document(s) prepared for Seller’s benefit
  • Demand processing fees
  • Notary Public fees ($10.00 per signature to be notarized)
  • Document signing service, if requested
  • Documents recording charges

The BUYER can generally be expected to pay for:

  • County Transfer Tax ($1.10 per $1,000 of sales price)
  • City Transfer Tax (varies by city)
  • Prorated taxes, interest, rent HOA dues (could be credit or debit)
  • Payable taxes (not yet delinquent) required to be paid in advance by Lender
  • Inspection fees (physical, roofing, geological, etc.)
  • New financing costs, fees, pre-paid interest and impounds, if any (except those costs to be paid by Seller, as required by Lender or as negotiated in Purchase Agreement) or Assumption costs if existing financing is to be assumed by Buyer
  • Hazard insurance premium – year paid in advance
  • Title insurance premium for Lender’s Policy
  • Escrow fee (Buyer’s portion)
  • Document preparation fee for documents prepared for Buyer’s benefit
  • Notary Public fees ($10.00 per signature to be notarized)
  • Document signing service, if requested
  • Special delivery/courier fees/wire transfer, if utilized
  • Document recording charges

(From Title360 Home Seller’s Guide)


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