| Settlement - Who Pays for What?
During the negotiation stage of the transaction, a mutually agreed-upon date for closing is determined.
Closing doesn't happen right when all the papers are signed. Closing typically happens a day or more later once all the documents have been recorded and funds have been dispersed properly. Prior to closing, the closing agent (usually an escrow or title company or attorney) will complete a detailed settlement statement for both buyer and seller.
The Seller Will Receive
- Utility deposits held by gas) electric, cable, telephone and other companies.
- Prorated portion of pre-paid property taxes .
- Pro-rated mortgage interest from payments made during the current month.
- Recording and notary fees.
- Fuel rebate for oil or propane remaining in storage tank.
- Net proceeds after sellers share of expenses are paid .
The Seller Pays
- Brokerage commission (the sum or percentage of the sale price, previously agreed upon by the seller and real estate agent).
- One-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing.
- Document preparation fees.
- Recording and notary fees.
- Title search and title insurance (paid by either the seller or the buyer).
- Local transfer taxes, if any.
- State taxes, if any.
- Repairs or inspections you have agreed to pay for.
For more information on closing and how it plays out, please contact us anytime. We are glad to answer any questions you may have along the way. The more informed our clients are about the process the less stressed they feel.
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