Who Pays for What at Closing

The seller can normally be expected to pay for the following:

• Real estate commission.
• Payoff of all loans in seller’s name.
• Fees, re-conveyance fees, and prepayment penalties.
• Home warranty according to the contract, if any.
• Any judgments, tax liens, etc., against the seller.
• Recording fees to clear all documents of record against the seller.
• Tax pro-ration. This is for any unpaid taxes at the time of transfer of title.
• Any unpaid homeowner-association dues.
• Any assessments according to the contract.
• Any and all delinquent taxes per the contract.

The buyer can normally be expected to pay for the following:

• Lender’s title-policy premium—American Land Title Association (ALTA).
• Recording charges for all documents in buyers’ names.
• All new loan charges (except those required of the seller by the lender).
• Interest on a new loan from date of funding to 30 days prior to first payment date.
• Home warranty according to contract.
• Fire-insurance premium for the first year.
• Home inspection.
• Reserve account for taxes and insurance.
• Flood-certification fee.
• Termite inspection, according to the contract.