Ready To Buy A Home

Who’s Who In The Transaction

Life Of A Purchase & Sales Transaction

Title Insurance

What is Escrow

Inspection Process

Who Pays What?

Financing

The Loan Process

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Who Pays What?

THE SELLER CAN GENERALLY EXPECT TO PAY FOR:

  •  Real Estate Broker’s commission
  • Due and payable property taxes, bonds, assessment
  • Prorated taxes, interest, rent HOA dues (could be credit or debit)
  • Payoff of all loans, other liens and judgments of record against the property (except those to be assumed by Buyer) including, but not limited to; accrued interest, demand/statement fee, re-conveyance fee, forwarding fee, late fees/prepayment penalty, if any
  • Loan fees required by the Buyer’s
  • Lender (specifically on FHA & VA loans)
  • Homeowner’s Association transfer fee, document fee and demand fee
  • Pest control inspection reports and cost for repairs
  • Home warranty plan
  • Title insurance premium for Owner’s Policy
  • Escrow fee (Seller’s portion)
  • Document preparation fee for Grand Deed and other recordable document(s) prepared for Seller’s benefit
  • Demand processing fees
  • Notary Public fees
  • Document signing service, if requested
  • Documents recording charges
  • Natural Hazard Disclosure
  • County Transfer Tax ($1.10 per $1,000 of sales price)
  • City Transfer Tax (varies by city)

THE BUYER CAN GENERALLY EXPECT TO PAY FOR:

  • Prorated taxes, interest, rent HOA dues (could be credit or debit)
  • Payable taxes (not yet delinquent) required to be paid in advance by Lender
  • Inspection fees (physical, roofing, geological, etc.)
  • New financing costs, fees, pre-paid interest and impounds, if any (except those costs to be paid by Seller, as required by Lender or as negotiated in Purchase Agreement) or Assumption costs if existing financing is to be assumed by Buyer
  • Hazard insurance premium – year paid in advance
  • Title insurance premium for Lender’s Policy
  • Escrow fee (Buyer’s portion)
  • Document preparation fee for documents prepared for Buyer’s benefit
  • Notary Public fees
  • Document signing service, if requested
  • Special delivery/courier fees/wire transfer, if utilized
  • Document recording charges

NEGOTIATED TERMS The costs and charges of a Southern California real estate transaction are fully negotiable between the Buyer and Seller through their respective agents. The negotiated terms will be set forth accordingly in the Purchase Agreement.

NEW RESPA REGULATIONS In accordance with new RESPA regulations, all fees for Buyer’s financing, Owner’s Policy of Title Insurance and Documentary Transfer Tax must be disclosed as a cost to the Buyer on the Good Faith Estimate and be charged to the Buyer in Sections 800, 1100 and 1200 accordingly on the HUD Settlement Statement. If negotiated in the Purchase Agreement that Seller pays for these costs and charges, Buyer will receive a credit for same from the Seller which will appear in Section 200 of the HUD Settlement Statement.

THE BUYER CAN GENERALLY EXPECT TO PAY FOR:

  • Prorated taxes, interest, rent HOA dues (could be credit or debit)
  • Payable taxes (not yet delinquent) required to be paid in advance by Lender
  • Inspection fees (physical, roofing, geological, etc.)
  • New financing costs, fees, pre-paid interest and impounds, if any (except those costs to be paid by Seller, as required by Lender or as negotiated in Purchase Agreement) or Assumption costs if existing financing is to be assumed by Buyer
  • Hazard insurance premium – year paid in advance
  • Title insurance premium for Lender’s Policy
  • Escrow fee (Buyer’s portion)
  • Document preparation fee for documents prepared for Buyer’s benefit
  • Notary Public fees
  • Document signing service, if requested
  • Special delivery/courier fees/wire transfer, if utilized
  • Document recording charges

NEGOTIATED TERMS The costs and charges of a Southern California real estate transaction are fully negotiable between the Buyer and Seller through their respective agents. The negotiated terms will be set forth accordingly in the Purchase Agreement.

NEW RESPA REGULATIONS In accordance with new RESPA regulations, all fees for Buyer’s financing, Owner’s Policy of Title Insurance and Documentary Transfer Tax must be disclosed as a cost to the Buyer on the Good Faith Estimate and be charged to the Buyer in Sections 800, 1100 and 1200 accordingly on the HUD Settlement Statement. If negotiated in the Purchase Agreement that Seller pays for these costs and charges, Buyer will receive a credit for same from the Seller which will appear in Section 200 of the HUD Settlement Statement.