Explanation of Closing Costs

Your Pioneer Title Agency Escrow Officer will explain your Settlement Statement following his or her receipt of the lender’s package. That said, this is a general guide to who pays what.

Seller can generally expect to pay:

  • Owner’s title insurance policy premium
  • Real estate commission
  • 1/2 of the escrow fee
  • Any loan charges required by Buyer’s lender, if specified in the purchase contract
  • Loan payoff,  plus interest charges including but not limited to statement, reconveyance and/or prepayment fees.
  • Any repair work, specified in the purchase contract
  • Home Warranty, if specified in the purchase contract
  • Any encumbrance of record against the seller
  • Recording charges to clear all documents of record against the seller
  • Prorated property taxes and/or delinquent taxes to date of close
  • Unpaid HOA dues or assessments
  • HOA transfer fee, if specified
  • HOA Disclosure Statement

Buyer can generally expect to pay:

  • Lender’s title insurance policy premium
  • 1/2 of the escrow fee
  • All new lender charges except those required by lender for seller to pay
  • Recording charges
  • Interest on new loan
  • Hazard insurance premium
  • Property tax impounds as required by new lender
  • Advance HOA management payments (if applicable)

Note: FHA and VA loan regulations require the purchaser and seller to pay for certain items. FHA requires the purchaser pay for impounds for taxes and hazard insurance as well as adjusted interest. FHA and VA both require the seller to pay for any of these fees if applicable to the contract: assignment of loan; flood certification; recording charges to clear title; new lender document preparation charges; inspection and or photo charges if applicable; tax service fee and lender warehousing fee. VA requires in addition that the seller pay all escrow fees. Purchaser pays additional costs not agreed by seller.

Print Friendly, PDF & Email