Buyers & Sellers

Closing Costs: Who pays for what?

Closing costs are the various charges made by the lender, the title company, real estate agents and other service providers necessary to complete a transaction. Although who pays for the various closing costs is negotaible between the buyer and seller, the following sets forth the customary division in San Francisco County.

The buyer customarily pays:

• Title Insurance premium for lender and buyer

• Escrow fee

• Notary fee

• Contractor and pest inspection fees

• All new loan charges (points, appraisal, document processing fees, etc)

• Interest on new loan from date of funding to 30 days prior to the 1st payment date

• Beneficiary fee for assumption of existing loan

• Home warranty

• Homeonwner's insurance for 1st year

• Earthquake Insurance (optional)

• Private mortgage insurance (typically 2 months) if required by lender

• Private mortgage insurance impound account (1 year) if required by lender

• Property tax impound account if required by lender

The seller customarily pays:

• Real estate broker commission

• Document preparation for deed

• Documentary transfer tax (amount is dependent upon sales price)

• Payoff of all loans in seller's name

• Interest accrued on all loans being paid off, reconveyance fees and pre-payment penalties

• Any judgement or tax liens against seller

• Reconveyance fees

• Property tax proration

• Unpaid homeowner's dues (for condominiums)

• Bonds or assesments

• Delinquent taxes

• Move-out fees (for condominiums)

• Notary fees and recordation fees

• Third party Natural Hazard Disclosure Statement