Closing Costs... Who Pays What?

Buyers and sellers a lot commonly ask about who pays for what in a home sale/purchase. Because this can vary state to state and county to county, I thought it would be helpful to provide a general outline of which costs buyers pay for and which costs sellers pay for. 

Keep in mind that the contract may stipulate differences from this general outline. Additionally, this outline is based on Naples (Collier County ) real estate, which may vary from Lee County real estate contracts and transactions. This outline does not include the amounts because that will vary transaction to transaction based on a number of factors such as the cost of the home purchase and the mortgage company the buyer is working with. For the most up-to-date, accurate information specific to your planned purchase or sale, you should consult with your title company/attorney and mortgage company. They are responsible for pulling together the respective costs for the below items.

Typical Costs the Buyer Will be Responsible For:

• Loan Financing

1. Credit Report
2. Appraisal
3. Lender Fees
4. Document Preparation Fee
5. Prepaid Interest (if applicable)
6. Prepaid  Tax and Insurance Escrows
7. FHA or VA Fees (if applicable)
8. Assumption Fees (if applicable - Charge imposed by a lender (usually a bank) on the buyer of a property who assumes the existing mortgage on that property)​

• Title Insurance

1. Lender's Title Insurance Premium
2. Endoresements
3. Closing Fee
4. Shipping and Handling Fee

• Survey 
• Prorated Association/Condo Fees
• Documentary Stamps on Mortgage ($.35 per $100 of loan amount as of the start of 2018)
• Intangible Tax (.002 x loan amount as of the start of 2018)
• Recording of Deed and Mortgage ($6.00 first page and $4.50 each additional page per instrument as of the start of 2018)
• Home Insurance (usually first year is paid upfront and subsequent years are handled through escrow account)
• Inspections (typically paid at the time of inspection in first 15 days after signed contract)

Typical Costs the Seller Will be Responsible For:

• Title Insurance

1. Owner's Title Insurance Premium
2. Title Search
3. Title Examination
4. Closing Fee
5. Shipping and Handling Fee

• Satisfaction of Existing Liens

1. Mortgages
2. Judgements
3. Federal Tax Liens
4. Outstanding Assessments

• Tax Proration
• Proration of Interest on Assumed Mortgage
• FHA or VA Service Charge (if applicable)
• Documentary Stamps on Deed ($.70 per $100 as of the start of 2018)
• Recording Fees
• Real Estate Commission