Closing Costs

The first thing to know is that responsibility for all costs in a real estate transaction are negotiable (except for some government loan program requirements, which do not apply with the Seller Assist Program). 

Ultimately, who pays what depends upon the relative bargaining strength of the parties. With the Seller Assist Program, the seller is in a relatively strong position and should take advantage of it, since these costs can run into thousands of dollars.  

Although who pays what is almost always negotiable, it is also fair to say that as a practical matter closing costs are normally paid in accordance with local custom. In Southern California:

The SELLER generally expects to pay for:

• Real Estate Commission (avoided in the Seller Assist Transaction)

• Escrow Fee (according to contract, frequently split 50/50)

• Document preparation fee for Deed

• Document transfer tax, depending on the locality, say, $1.10 per $1,000.00 of sales price

• Any City/County Transfer/Conveyance Tax (according to contract)

• Any loan fees required by buyer's lender (not relevant in the Seller Assist Transaction)

• Termite inspection (according to contract)

• Homeowner Association Transfer Fee

• Prorated Homeowner Association Dues

• Payoff of all loans in seller’s name

• Natural hazard disclosure report and insurance

• Interest accrued to lender being paid off, Statement Fees, Reconveyance fees and any Prepayment Penalties

• Termite Inspection (according to contract)

• Termite Work (according to contract - this is normally the  Section 1 mandatory work)

• Home Warranty (according to contract)

• Bonds or assessments (according to contract)

• Any judgments, tax liens, etc. against the seller

• Recording charges to clear all documents of record against seller

• Tax pro-ration (for any taxes unpaid at time of transfer of title)

• Any unpaid Homeowner's dues

• Any bonds or assessments (according to contract)

• Any and all delinquent taxes

• Own notary fees

• Special delivery and courier fees

The BUYER generally expects to pay for:

• Title insurance premiums

• Escrow Fee (according to contract, frequently split 50/50)

• Document preparation (if applicable)

• Own notary Fees

• Recording charges for all documents in buyer’s names

• Property Tax prorated (from date of acquisition)

• Prorated Homeowner Association Dues

• All new loan charges, except those required by lender for seller to pay (not relevant in the Seller Assist Transaction)

• Interest on new loan from date of funding to 30 days prior to first payment date (not relevant in the Seller Assist Transaction)

• Assumption/Change of Records fees for takeover of existing loan

• Beneficiary Statement Fee for assumption of existing loan

• Buyer ordered inspection fees (roofing, property inspection, geological, etc.)

• Home Warranty (according to contract)

• Bonds or assessments (according to contract)

• City/County Transfer/Conveyance Tax (according to contract)

• Fire Insurance Premium for first year

• Special delivery and courier fees