Who Pays What? (Seller and Buyer Closing Cost)

In California Who Pays What is determined by local custom. Below is a list of who pays which fees in Southern California.

The SELLER

can generally be expected to pay for:

• Real estate commission
• Owners title insurance policy
• 1/2 of the sub-escrow fee
• 1/2 of escrow fee
• Document preparation fee for deed
• Documentary transfer tax
• Transfer or conveyance tax
• Loan fees required by buyer's lender (Only for FHA/VA)
• Payoff all loans against property
• Seller's lender being paid off

                 Interest accrued
                 Statement fees
                 Reconveyance fees
                 Prepayment penalties

• Termite inspection (according to contract)
• Termite work (according to contract usually section 1)
• Home warranty (according to contract)
• Any judgements, tax liens, etc., against the seller
• Tax proration (for any taxes unpaid at the closing)
• Any unpaid homeowner's 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

The BUYER

can generally be expected to pay for:

• Lenders title insurance policy
• 1/2 of the sub-escrow fee
• 1/2 of escrow fee
• Document preparation (if applicable)
• Notary fees
• Recording charges for all documents in buyer's name
• Tax proration (for any taxes unpaid at the closing)
• Homeowner's transfer fee
• All new loan charges (except FHA/VA loans)
• Interest on new loan from date of funding to 30 days prior to first payment date Assumption or change of records fee on existing loan
• Assumption of existing loan
• Inspection fees (roofing, property, geological, etc.)
• Termite work (according to contract usually section 2 )
• Home warranty (according to contract)
• Fire insurance premium for first year