Who pays for home buying costs

There are many fees and taxes and premiums involved with the sale of a home. The lists on this page reflect what is customary in Los Angeles County, California. There is, however, an old saying in real estate: "Everything is negotiable."

The Buyer generally pays for:

Escrow fee charged by the escrow company for their services -- 50%.

Loan fees, miscellaneous charges, points, appraisal charged by the lender. (1 point is 1% of a loan and is added interest on the loan -- charged up front.)

Lender's Title Policy. This insures the lender that the title to the property is clear and free of liens or other problems.

Document preparation fee which may be required by the lender.

Inspection costs.

Termite repairs - Section 2. (See the seller's side for more information.)

Notary fees and express delivery fees, if necessary.

Property taxes and bond or assessment fees as prorated from the date the sale closes.

Home Owners' fire insurance for first year.

Interest on the new loan from the date the loan closes to the date the first payment is due.

Recording fees charged by the County Recorders office.

Important: When a buyer applies for a loan, the lender should provide a document called a "Good Faith Estimate" within 3 days. This estimate will itemize all buyers' costs, including escrow and most of the items on this list. Be sure to ask for your Good Faith Estimate of Settlement Costs so there will not be any surprises when the closing date comes.

The Seller generally pays for:

Escrow fee charged by the escrow company for their services -- 50%.

Owners' Title Report. This insures that the seller has clear title to the property and that there are no problems or liens or other clouds on the title.

Property Hazard Report required by the state of California. This document, prepared by companies who specialize in it, itemizes dozens of potential hazards, from earthquake faults to nearby airports and how they might affect the property.

Termite Inspection and Section 1 repairs. The termite report has 2 sections: Section 1 lists absolutely necessary repairs. Section 2 items are recommended repairs.

Hot water heater strapping and smoke detector installation, if neither of these has been done.

Retrofit requirements by local and/or county governments. Local inspection fees, if any.

City or county transfer fees.

Home Owners' Warranty on major home systems.

Property taxes and any bond or assessment fees to the date the sale closes.

Home Owners Association dues, if unpaid. Any Home Owners Association transfer fees.

Payoff fees for the sellers' loan. (This is above the amount still owed on the seller's home loan.)

Broker's commission.

Notary and express delivery fees, if necessary.

Recording fees charged by the County Recorder.

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