When Buying and Selling a Home Who Pays What?

Prior to closing the closing agent will complete a detailed settlement statement for both the buyer and seller. Closing is when the buyer and seller sign all the paperwork and pay their share of the settlement fees and the documents are recorded. Below is a breakdown of what you can expect.

Buyer Pays:

Earnest money deposit
One-half of escrow or legal fees paid to the attorney or escrow company for closing
Document preparation fees
Recording and notary fees
Title search and title insurance (paid by either the seller or the buyer)
Local transfer taxes, if any
Repairs or inspections that the buyer has agreed to pay
Loan fees
Appraisal fees
Credit report fees

Seller Pays:

Brokerage commission
One-half of escrow or legal fees paid to the attorney or escrow company for closing
Document preparation fees
Title search and title insurance (paid by either the seller or the buyer)
Local transfer taxes, if any
State taxes
Repairs or inspections seller has agreed to pay

Seller Receives:

Utility deposit held by gas, electric, cable, phone and other companies
Prorated portion of pre-paid property taxes
Prorated mortgage interrest from payments made durring the current year
Fuel rebate for oil or propane remaining in tank
Net proceeds after seller's share of expences is paid