Fees Typically Associated with a Real Estate Transaction

We are often asked to address the fees associated with a real estate transaction and who pays those fees. While there are “usual and customary” fees that each party is typically responsible for, it is important to note that many of the fees can be negotiated by either party at the time of the offer. Below is a list of the “usual and customary” fees, and who typically pays them.

SELLER TYPICALLY PAYS FOR:
One half of the Escrow Fee
Real Estate Agent’s Commission
Payoff of all loans associated with the property
Any judgements, tax liens, etc. associated with the Seller
Tax Certificate(s)
Prorated share of taxes and HOA assessment for the time they owned the property in the year that it is sold to settlement date
HOA Resale Certificate and any unpaid HOA assessments due prior to the sale consummating
Recording charges for Release of Liens and Power of Attorneys if applicable to sale
Title Insurance Premium: Owner’s Policy
Home Warranty, if negotiated in contract
Document Preparation Fees for Warranty Deed, Releases, and Power of Attorneys, if applicable to sale

BUYER TYPICALLY PAYS FOR:
One half of the Escrow Fee
Document preparation fees for loan documents and Power of Attorneys, if applicable
Recording charges for documents related to the transfer of title to the buyer
Prorated share of taxes and HOA assessments (from the date of acquisition)
All new loan fees
Association fees, deposits, reserves and other charges resulting from the transfer of the property not to exceed the stated amount in the contract, of which seller pays excess
Title insurance premium: Lender’s Policy
Interest on the new loan from the date of funding to 30 days prior to the first payment date
Inspection fees
Hazard insurance premium for the first year

Prior to extending an offer on real property, it’s important to do your homework. Use a knowledgeable real estate agent or real estate attorney so that you can get the best information possible. You can also reach out to your Escrow Officer at Heritage Title Company with any questions.

As always, THANK YOU FOR ALLOWING HERITAGE TITLE COMPANY THE OPPORTUNITY TO
COMPLETE YOUR TRANSACTION. WE LOOK FORWARD TO WORKING WITH YOU!