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Closing Cost, who pays for what

Closing costs are typically divided in buyers and sellers cost. Items typically paid by the seller are cost related to your existing mortgage, transferring the deed to the new owner and professional marketing fee. The buyer pays inspection costs, fees related to the new mortgage and the recording of the new deed.

The contract will state who pays for what. Refer to the net sheet your Realtor will prepare for an estimation of closing costs and net proceeds. Keep in mind that costs and items can vary depending on the actual costs charged by the vendors involved in a closing.

Typical Closing cost paid by the seller

  • Documentary stamps on the deed 
  • Pay off of old mortgages
  • Prepayment penalty it there is any
  • Owners title insurance
  • Recording payoff of existing mortgage
  • Outstanding Real estate taxes for current year until closing date
  • Home warranty (if offered by seller)
  • Professional marketing fee (Realtor)
  • Express mail fees
  • Handling fees, title seach

Once there is an offer your Realtor or Real Estate attorney will update the net sheet to calculate an estimate for this particular contract scenario. 

Keep in mind that all items can be negotiated different. On new homes sales the buyer typically pays for some items that otherwise would be paid for by the seller.

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Copyright 2005 - Malte Strauss -  office phone 800-771-0031 extension 298  -  direct line 407-416-9659 - fax 407-650-2769 
All information believed to be correct but not guaranteed. Usage of information at your own risk. Southern Realty Enterprises, Inc. is an Equal Opportunity Company. equalhous.gif (1822 bytes) Equal Housing Opportunity. Each office is independently owned and operated.