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Closing Costs |
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I have never sold a home, and in a recent discussion, I learned that the seller also has closing costs. Is this in addition to any commision to a real estate agent? Please explain this to me. Thanks! |
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The seller would pay off any existing mortgage, unpaid water or utility bills, unpaid property taxes up to that date, and as you realize, any broker's commission previously agreed upon.
After that, who pays for what really depends on local custom. In most areas, the seller pays for proof of clear title being transferred, which involves a title search. Most states require a transfer tax, and in most cases that is paid by the seller, though again, local customs vary. Same with the appraisal and survey that may be required for the loan -- local customs vary.
Sometimes the seller agrees to pay part of the buyer's closing costs, particularly those involved with getting the mortgage loan. Why would a seller agree to do that? Because the buyer might be short of cash, and the idea is to get the house sold.
No matter what is usual in the area, buyer and seller can make any written agreement they want, whatever suits their particular needs, about who pays for what. It's all part of the negotiating process.
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Edith
Originally published on April 8, 2008 |
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