Legal Option Title Agency, Inc.

Closing costs are the costs associated with the loan closing, while settlement charges include closing costs, pre-paid interest, escrow reserves for taxes and insurance, and the down payment (if the loan is for a home purchase).  Closing costs and settlement charges are listed on the Good Faith Estimate (GFE) during the loan application and on the HUD at the closing.

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 Fees

            The seller will have to 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.

• Homeowner’s Insurance

            The buyer is responsible for purchasing a homeowner’s policy prior to the close of  escrow.

• Assessments and Liens

            The seller is responsible for any assessments or liens on the property, which will need to be paid and/or resolved before the close of escrow.  Examples include tax liens or judgments, etc.

• 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. Check with your real estate professional.

• Escrow Services

            Like title insurance, the financial responsibility for escrow services varies from area to area.  Check with your real estate professional.

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.  Be sure to consult your real estate professional for details.

• Termite Removal Costs
• Document Preparation Fees
• Deed Recording Charges
• Loan Assumption Fees
• Home Warranty
• Utility Adjustments
• Property Inspection Fees
• Termite Inspection