Seller’s Guide to Closing Costs and Who Pays What

Although most costs involved in a real estate transaction can be negotiated between buyer and seller, there are a lot of costs that are traditionally paid by one party or another. We have set forth below a list of these charges:

The SELLER can generally be expected to pay:

  • owner’s policy of title insurance
  • homeowners association inspection fee
  • real estate commissions
  • escrow fee (50%)
  • payoff of all existing loans, liens and encumbrances, including all costs and fees incurred by reason of a payoff of existing loan or lien
  • termite work
  • taxes due and payable or back taxes
  • recording charges (50%)
  • overnight delivery fees

Mandatory Costs

FHA AND VA regulations require the seller to pay the following fees in an FHA or VA transaction, if applicable: assignment fee, flood certification fee, bringdown endorsements, document preparation fees, photo/inspection fees, tax service contract, warehousing fees, or any other loan cost or charge except the following: prepaid interest, impounds on new loan, loan origination, loan discount fees or appraisal. In addition, on a VA transaction the seller is required to pay the entire escrow fee.

The BUYER can generally be expected to pay:

  • lenders policy of title insurance
  • endorsement fees for title insurance
  • escrow fees (50%)
  • impounds and interest on new loan
  • all new loan charges {including appraisal, origination and discount fees, document preparation, etc. (except those required by the lender for the seller to pay)}
  • fire insurance premium for first year
  • courier fees
  • homeowners association dues required by the association for future months

Below is a list of costs involved in a transaction that are negotiable and there is no general tradition as to which party pays them:

  • termite inspection fee
  • home warranty
  • homeowners association transfer fees

The above information was provided all or in part courtesy of Capital Title Agency.



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My Clients Say…

I was exceptionally pleased with professionalism during the entire process of selling my home during such trying economic times. Randi was exceptional and made the difficult task of listing and short selling the house effortless. All questions were answered completely. The closing was explained very thoroughly and the date was set far enough in advance to allow me time to adequately prepare for it. Randi was knowledgeable about the area and the market and was readily available at all times to answer questions about the process. She was patient and understanding. I HIGHLY recommend Randi to anyone looking for the best in the business to sell their home. — Kris Gelb

Randi Christel, Realtor

RE/MAX Excalibur
Email: Randi Christel
Tel: 480-247-2736
Fax: 866-212-8838
Cell: 602-370-2396