Who Pays What?

There are a variety of services required to close a real estate transaction and some fees/closing costs that may apply. What is dictated by the traditions and practices in each area or what the parties mutually agree upon may differ from state to state and even county-to-county. Furthermore, FHA and VA loans may have certain requirements with regards to who pays for a specific fee or how much can be contributed. Finally, remember many items including who pays for what in a real estate contract are negotiable.

The SELLER can generally be expected to pay:

  • Real estate commission as specified in listing agreement or sales contract.
  • Any applicable city, county or real property transfer/conveyance taxes (documentary transfer taxes) as specified in contract.
  • Payoff of all loans in seller’s name including principal balance plus interest, any demand, re-conveyance or other fees, any prepayment penalties and preparation of documents and existing loan balance being assumed by buyer if applicable.
  • Any judgments, tax liens, etcetera against seller.
  • Any unpaid property taxes at time of transfer.
  • Any unpaid HOA dues.
  • Any bonds or assessments if specified in contract.
  • Any and all delinquent taxes.
  • Termite inspection and/or work if specified in contract.
  • Home warranty if specified in contract.
  • Notary fees if applicable.
  • Half of escrow or sub-escrow fees.
  • Title insurance premium.
  • Recording charges to clear all documents of record against seller if applicable. Any loan fees required by buyer’s lender if applicable.

The BUYER can generally be expected to pay:

  • All new loan charges as required by lender including any loan origination fees or funding fees, credit report, preparation of documents, prepaid interest and appraisal fee (except those required by lender for seller to pay if applicable).
  • Impounds for taxes and fire insurance as required by lender.
  • Termite work if specified in contract.
  • Escrow fees as specified in contract.
  • Owner’s insurance premiums (CLTA)
  • Lender’s title policy premiums (ALTA).
  • Document preparation fees.
  • Notary fees if applicable.
  • Homeowner’s transfer fee if applicable.
  • Tax proration from date of acquisition.
  • Recording charges for all documents in buyer’s name.
  • Fire insurance premium for first year.
  • Inspection fees for roofing, property inspection and geological.
  • City transfer/conveyance tax as specified in contract.
  • Beneficiary statement fee for assumption of existing loan if applicable.
  • Assumption/change of records fees for takeover of existing loan if applicable.

If you have any additional questions pertaining to escrow fees/closing costs and services please contact me. I look forward to hearing from you soon!


Known as a skilled, tough negotiator combined with genuine concern for the welfare of his clients, Rick’s strong commitment, coupled with the ability to overcome any obstacle has made him a mighty successful sales agent today. He also works tirelessly to help buyers find the perfect property. He will guide you step by step throughout the entire Real Estate transaction. He will be available day and night to answer questions and address concerns. In this competitive changing market I use the latest advances in the Industry to yield the highest return to the owners of each property I help sell. As a long time resident of the regions I serve I'm able to provide useful information regarding schools, parks, entertainment, fine dining, to historical landmarks. Providing Real Estate needs in one of the safest city in our Nation according to the FBI ratings. Considered to be a prosperous city and a pleasant place to live, work, and raise a family. With nearly 230.000 residents, Irvine has had the lowest per capita violent crime incidents of any U.S. city of 100,000 or more. The city is divided into a number of planned residential villages, some featuring schools and resort-style recreation like pools within the village boundaries. With new homes being built in the City of Irvine and sold within a week, Irvine has become a very desirable place to live in Orange County. Experienced in Short Sales, Foreclosures, REO’S, Sellers Market, Buyers Market, Probate and Property Leases. Area Served, Anaheim, Corona Del Mar, Costa Mesa, Coto De Casa, Cowen Heights, Dove Canyon, East Irvine, Fountain Valley, Newport Coast, Newport Beach, Portola Hills, Santa Ana, Trabuco Canyon, West Minster, Foothill Ranch, Long Beach, Norco, Moreno Valley, Downey, Bell Flower, Lakewood, and San Pedro Coldwell Banker is a company trusted throughout the nation to safeguard real estate transactions for buyers & sellers.