Closing Cost

This list includes many typical closing costs and is intended as sample information only. Areas of California have different customary traditions on closing cost sharing between buyer and seller. Remember, closing cost are a negotiable item. Most of the typical closing costs are listed below, however, other costs not listed here may apply to your particular situation.

In addition to the following charges, there are several miscellaneous charges you may find on your closing statement. You need to inspect these charges carefully and make sure the services were provided before you pay for it.

COMMISSION

The seller will pay commission fees to the real estate agents representing both the buyer and seller.

PROPERTY TAXES

The seller is responsible for the payment of property taxes until the last day of ownership. Property taxes will be prorated between the buyer and seller based upon the actual date of closing. Buyers, Please note! You will receive a supplemental tax bill from the County for the additional evaluation after the closing. Actual tax rates will vary by city, school district, or special assessment districts, but 1.125% is a good planning rate.

HOMEOWNER'S INSURANCE

The buyer is responsible for purchasing a homeowner's policy prior to the close of escrow. Lender requirements will vary on the amount of escrow requirements for the insurance policy if it is not paid in full in advance.

ASSESSMENTS AND LIENS

Any assessments or liens on the property need to be paid and/or resolved before the close of escrow. Examples include tax liens or judgments, etc. This is normally the seller's responsibility.

TITLE INSURANCE

The financial responsibility for title insurance varies from county to county. In some areas the buyer is responsible and some areas the seller is responsible. Also, the buyer and seller may agree to a 50/50 split. Locally, tradition is for the Seller to pay for the Title Insurance policy. It should also be noted for Buyers that your Lender will require what is referred to as a Lender's Title Polity which is the responsibility of the Buyer

ESCROW SERVICES

Like title insurance, the financial responsibility for escrow services varies from area to area. In almost all cases locally, escrow are handled by the title company. Local tradition is for these fees to be split 50/50 between Buyer and Seller.

Responsibility for the following fees may be negotiable when you open escrow. Once again, these costs may or may not apply to your specific situation.

PROPERTY INSPECTION FEES

Home inspections are also always paid for by the Buyer, Even when a Home Inspection Report is provide by the Seller I generally recommend the Buyer purchase their own. The cost of a Home Inspection will vary based upon the size of the home and any special circumstances but will generally cost between $350 and $500 for most homes.

TERMITE INSPECTION

Although commonly referred to as the Termite Inspection, more specially it is the Wood Destroying Pest Report. Local tradition if for this report to be paid by the Seller unless the property is a Bank Owner Property.

TERMITE REMOVAL/REPAIR COSTS

Any evidence of active Wood Destroying Pest will generally be required to be repaired by the Lender before close of Escrow. This is a negotiable item but will generally be paid for by the Seller.

DOCUMENT PREPARATION FEES

DEED RECORDING CHARGES

LOAN ASSUMPTION FEES

HOME WARRANTY

UTILITY ADJUSTMENTS

APPRAISAL