Closing Costs – Who Pays It?
Whether you are buying or selling a home, once you have signed the contract you are always happy and relieved. However, this happiness can subdue when it comes to the issue of who pays the closing costs on the transaction.
Usually both the buyer and seller pay some of the closing costs, though the amount varies depending on the area and the contract signed by both the parties. Therefore, whether you are planning to sell your home or buy one, it is important to know the standard practice in that area and the law that is prevalent. Every state in the US has different requirements regarding closing costs and this can change in one city to another in the same state. A buyer and seller should know what the closing costs are so that they have sufficient money to meet this expense.
Usually a buyer pays the following closing costs – fees for getting a mortgage, inspection fees, homeowner’s insurance, title insurance, escrow fees and attorney’s fees. Some of these closing costs are paid completely by the buyer while others can be shared between the buyer and seller depending on the contract they have agreed upon.
A seller’s closing costs usually include loan payoff fees, real estate commission, title insurance, cash payments instead of doing repairs, all or part of the transfer taxes and escrow fees.
If you are unaware of the law and practices in the area, closing costs can be quite expensive and it always helps to find out the details and discuss it with the buyer or seller as to who will pay what closing fees to ensure you do not get any nasty surprises.
Real Estate Closing Costs
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