Closing Costs Customarily Paid By The Seller In Escrow

 

Legal Closing

  • Owner’s Title Policy (CLTA)
  • Escrow services
  • Drawing deed
  • Obtaining reconveyance deed
  • Notary fees
  • Recording reconveyance
  • Documentary transfer tax (provided county and/or city has adopted this tax).  $.55 for each $500.00 or fractional part thereof: Check your local area for differences in rates and requirements for transfer taxes.
  • Other agreed-on charges

Financial Closing

  • Mortgage discounts (points)
  • Appraisal charge for advance commitment
  • Structural pest control report or structural repair (if any needed).  Typically, inspections are paid for by buyer and clearance is provided by the seller.
  • Interest on existing loan from last monthly payment to closing date.
  • Beneficiary statement (balance of existing loan)
  • Loan payoff (first trust deed and/or any junior trust deed)
  • Pre-payment penalty
  • Other agreed-on charges

Adjustments Between Seller and Buyer (depend on closing or other date agreed on)

  • Pay any tax arrears in full
  • Pay any improvement assessment arrears (assessment may have to be paid in full)
  • Pay any other liens or judgments necessary to pass clear title
  • Pay broker’s commission
  • Reimburse buyer for prepaid rents and deposits and adjust taxes, insurance, and interest as required
  • Occupancy adjustments
  • Certain costs are customarily charged to the buyer and others to the seller.  However, the two parties may agree to share some costs.  For actual fees, obtain copies of fee schedules from your Realtor®. 
  • When an offer is accepted, the closing process begins.  The closing period is a crucial part of the selling process.  Communication and cooperation between the seller, buyer and Realtor® is key to a successful closing

 Some Closing Activities May Include: (By Title/Escrow/Listing Agent)

  • Preparing closing Fact Sheet to track contingency removal deadlines and specify necessary disclosures.
  • Opening the closing and ordering the preliminary title search.
  • Verifying that the buyer’s loan application has been submitted to the lender.
  • Counseling seller on any issues that arise subsequent to original negotiation of offer.
  • Attending appraisal and supplying appraiser with list of comparable’s to support the sale price.
  • Confirming contingency removals and making sure that pertinent documents are signed off and in the office/clients file.
  • Contacting lender to check regularly for potential problems and delays in funding.
  • Supplying lawyer or CPA with closing instructions.
  • Confirming that buyer has arranged property fire and casualty insurance coverage in the amount of the new loan.
  • Arranging final walk-through with buyers and buyer’s agent
  • Arranging key transfer with seller and buyer’s agent.
  • Arranging delivery of seller’s check if applicable

For some “Terms” used in escrow Terms Used In Escrow