Title Insurance

Sellers: The Sellers provide to the buyers a policy of title insurance.

Buyers: The Buyers provide a policy of title insurance to the lender if a mortgage is involved and possibly to the seller in a seller financed transaction. The lender may also require additional coverage or endorsements to the title policy.

Settlement or Closing Fee

Buyers and Sellers usually split the settlement fee.

VA loans: The veteran is not allowed to pay any settlement fee.

Document Preparation

A document preparation fee is charged for additional documents that are required to perform the closing.

Overnight Delivery Fee

Sellers: Mortgage payoffs are sent via overnight delivery service to better track the payoff and to stop the interest from accumulating. Closing documents for out of state sellers will be sent and received via overnight delivery service.

Buyers: Mortgage or loan documents come from, and need to be sent back to a mortgage lender out of state. In these cases it is not uncommon for the borrower to pay the overnight courier fees. Closing and loan documents that need to be sent to out of state buyers will be sent via overnight delivery service.

Recording Fees

Sellers: The sellers pay for any reconveyances or release documents to be recorded as well as a fee to prepare and track these documents.

Buyers: The Buyers pay the recording fees for the warranty deed and the trust deed.

Prorations

Often forgotten on net sheets and closing cost estimates are the prorations.

Sellers: For the closings in all but December, the sellers give up or credit the buyers with the prorated amount of the property taxes. Other prorations, such as condo fees, sewer/water assessments, etc., may be charged or credited to the sellers depending on what has been paid or what is owed.

Buyers: For the closings in December, the sellers will have already paid the property taxes for the entire year. The buyers will pay to the sellers the prorated amount from the date of closing until the end of the year. Condo fees, sewer/water assessments, or any other prepaid items may be prorated and charged to the buyers.

The contents contained herein are intended for general informational purposes only, and should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. Anyone needing specific legal advice should consult an attorney.