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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.
-
ASSESSMENT 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 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.
-
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.
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.
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