USUAL CHARGES TO THE SELLER
Commissions
A set fee agreed upon between seller and agent(s).
Policy of Title Insurance
The fee is based on the sales price of the property. Note: If your seller has owned the property less than 2 years, a discount of 20% off the base rate is given by any title company. Various title companies also have a 5-year short-term rate. If your seller holds an "Interim Binder Policy of Title Insurance" issued when your seller acquired title to the property being sold, you MUST use the same Title Company for the binder to be valid.
Documentary Transfer Tax
This fee is $1.10 per thousand based on the sales price of the property. If the buyer is assuming an existing loan of record, the transfer tax is based on the difference of the sales price and the loan amount being assumed.
Recording Fees
Sellers account is charged for any documents of the seller being recorded in escrow, reconveyance, and quitclaim deed, power of attorney or any releases. The recorders fee is $6.00 for the first page and $2.00 for each additional pages.
Tax Report
This fee is common and is a charge of the Title Company, approximately $10.00.
Escrow Fee
This fee again is based on the sales price of the property. Seller pays one-half and buyer pays one-half. Please note: Full escrow fee can be paid by the seller or by the buyer; the exception is government financing where seller pays the full escrow fee for VA transactions; on FHA the buyers escrow fee is a set amount by FHA and seller pays the difference.
Termite
Seller usually pays for the inspection fee, $50.00 to $100.00. If a clearance is required, seller also pays for the clearance.
Payment of Seller's Loan
This includes payment of the unpaid principle balance and interest from the date the loan is paid up to. For example: Provided the loan is current (last payment made Feb. 1, interest will be charged to seller on the unpaid balance from Feb. 1 until the date payoff check reaches the lender. If the lender is NOT local, interest will be charged for additional days and if sent Federal Express, the Title Company will charge your seller this fee. If the loan is not current, you must allow for late charges. Each lender usually charges a demand/statement fee which can run $50.00 to $00.00 and a fee to issue the reconveyance (release) which can run $50.00 to $100.00. Lenders may also hold the amount of your sellers last payment for final clearance of their bank funds. Impounds, if any will be refunded after the loan is paid off. This usually takes 30 to 60 days.
Taxes
Taxes are prorated between seller and buyer through escrow. This can be a charge or a credit depending on the time of the year escrow closes.
Prorations
Items usually prorated in escrow between seller and buyer are taxes, homeowners association dues, rents and security deposits.
Homeowner Associations
Some properties are affiliated with an association. It is the responsibility of the seller to provide the buyer with all documents of the association. All associations charges are now charging a statement fee also.
Sub-Escrow Fee
This fee is charged by the Title Company to cover their accounting costs to process buyer funds and to pay sellers loans. It can vary from $75.00 to $150.00. If the property is clear, (no payoff) this fee is charged to the buyer.