Who Pays For What (when buying/selling a property)?

House Pricing

I get asked this question a lot from my clients, including those who have purchased and sold properties before. I’ve put together a breakdown of costs for the buyers and sellers.  Keep in mind that these are only typical numbers and that everything is negotiable.

Seller’s financial responsibilities

  • Real estate commission (this ranges from 5-6% of purchase price)
  • Documentation preparation fee for deed
  • Documentary transfer tax
  • Any city transfer/conveyance tax (according to contract)
  • Any loan fees required by the buyer’s lender
  • Payoff all loans in seller’s name (or existing loan balance if being assumed by buyer)
  • Interest accrued by lender being paid off, statement fees, reconveyance fees and any prepayment penalties
  • Termite Inspection (according to contract)
  • Termite work (according to contract)
  • Home warranty (according to contract)
  • Any judgements, tax liens, etc., against the seller
  • Tax proration (for any taxes unpaid at time of transfer of title)
  • Any unpaid homeowner’s association 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
  • Escrow fees (according to contract)
  • Title insurance premium (according to contract)


Buyer’s financial responsibilities

  • Title insurance premium (according to contract)
  • Escrow fees (according to contract)
  • Notary fees
  • Recording charges for all documents in buyer’s name
  • Inspection fees (roofing, property inspection, geological, mold, etc.)
  • Termite inspection (according to contract)
  • Home warranty (according to contract)
  • Fire insurance premium for first year
  • Tax proration (form date of acquisition)
  • City transfer/reconveyance tax (according to contract)
  • Homeowner’s association transfer fee
  • All new loan charges (except those required by the lender for the seller to pay)
  • Interest on new loan from date of funding to 30 days prior to first payment date
  • Assumption/charge of records fee for takeover of existing loan (if applicable)
  • Beneficiary statement fee for assumption of existing loan
  • Lender’s Title insurance policy premium


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Scott Cheng - Real Estate Broker




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