Buyers' and Sellers' Closing Costs

Fullerton, CA Realtor® Adam Brett reminds buyers and sellers that it is always smart to know what they are getting into with real estate transactions.

“Selling your home may seem that simple but there are taxes, fees, insurance and other expenses that buyers and sellers must prepare for.

I compiled a list of the traditional distribution of expenses associated with real estate. Certain regions of the country and even within the State of California (Northern and Southern), vary in these customs. Keep in mind that many of these items are negotiable by both parties at the time of the offer, excluding some expenses required by the lender to be paid specifically by the seller.


The BUYER typically pays:

Notary Fees

Escrow Fees

Document preparation (if applicable)

Recording charges for all documents in buyer’s name

Termite Inspection

Tax Proration

Homeowner’s transfer fee

All new loan charges (except those required by lender for seller to pay)

Interest on new loan from date of funding to 30 days prior to first payment date

Assumption/Change of Records fees for take-over of existing loan

Beneficiary Statement fee for assumption of existing loan

Other Inspection fees (roofing, property inspection, geological, etc)

Home Warranty

Lender’s policy

Fire Insurance Premium for first year



The SELLER typically pays:

Real estate commission

Escrow fees

Notary fees

Title Insurance Premium: Owner’s Policy

Any bonds or assessments

Recording changes to clear all documents of record against seller

Any unpaid homeowner’s dues

Tax proration (for any taxes unpaid at time of transfer of title)

Any judgments, tax liens, etc. against the seller

Home warranty

Termite Work and Inspection

Statement Fees, reconveyance fees, and any prepayment penalties

Interest accrued to lender being paid off

Payoff of all loans in seller’s name (or existing loan balance if assumed by buyer)

Any loan fees required by buyer’s lender

Document preparation fee for deed

Applicable city transfer/conveyance tax

County documentary tax (55 cents per $500 of consideration, exclusive of the value of any lien or encumbrances attaching to the property at time of sale)



This is pretty much the most comprehensive list of things I can think of. I also would like to know your experiences and if any, issues arising about who pays for what.”


Read more blog posts by Adam Brett.

See more tips, checklists, and resources at the First Time Home Buyers home page at  REALTOR.com









Read more: Who Pays for What in Home Sale?
REALTOR.com® Blogs