Looking to clarify who shoulders what financial burdens in a real estate transaction? Look no further! Here’s a handy cheat sheet outlining the responsibilities of those who are buying and those who are selling.
For those who are selling, costs include items like real estate commission, loan payoffs, and tax prorations. Buyers typically cover expenses such as title insurance, escrow fees, and inspection costs. Understanding these financial obligations upfront can help streamline the buying or selling process. So, let’s dive in and demystify who pays what in real estate transactions!
THE SELLER IS RESPONSIBLE FOR:
- Selling agent’s real estate commission
- Document preparation fee for deed
- Documentary transfer tax
($1.10 per $1,000 of sales price) - Any city transfer/conveyance tax (according to contract)
- Payoff of all loans in the 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 prepayment penalties
- Termite inspection (according to contract)
- Home warranty (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 association dues
- Recording charges to clear documents of record against seller
- Any bonds or assessments (according to contract)
- Any and all delinquent taxes
- Notary fees
- Escrow fee (one half)
- Title insurance premium of owner’s policy
THE BUYER IS RESPONSIBLE FOR:
- Buying agent’s real estate commission
- Title insurance premium for lender’s policy
- Escrow fee (one half)
- 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
- Assumption/change of record fees for takeover of existing loan, if applicable
- Beneficiary statement fee for assumption of existing loan, if applicable
- Inspection fees (roofing, property inspection, geological)
- Home warranty (according to contract)
- City transfer/conveyance tax (according to contract)
- Fire insurance premium for first year
Personal Versus Real Property
Understanding the difference between personal and real property is crucial in real estate transactions. A sales contract usually covers all real property, including fixtures like light fixtures, attached mirrors, and landscaping. On the other hand, items not permanently affixed, such as potted plants, standalone appliances, and movable furniture, aren’t automatically part of the sale. To avoid confusion, list any questionable items in the purchase agreement as either included or excluded. This clarity ensures smooth transaction proceedings!
Ready to navigate the complexities of real estate transactions with ease? Contact your local Surterre real estate specialists at SurterreProperties.com today. Let us guide you through every step of the process and ensure a seamless experience from start to finish!
