Real Estate Commissions
A fee paid to the listing real estate brokerage once a property has sold; can range from 3% to upwards of 6% and is typically split between the Listing and Selling agents. Commissions are paid to agents for their valuable time and expertise (similar to paying a labor fee to a mechanic). The commission also helps brokerages and agents recuperate any expenses of listing your home for sale.
Owner’s Title Insurance
Paid by the seller for the buyer. An Owner’s Title Policy is an insurance policy that is purchased for a one-time fee at closing and lasts as long as a buyer or a buyer’s heirs have interest in a property. The insurance policy is to protect the buyer against title issues that occur after a purchase, such as errors and omissions in deeds, mistakes in examining records, forgery or undisclosed heirs.
Title Search Fee
Paid to the title company to research the title of a property to find out if the seller has salable interest in the property, if there are any restrictions to the use of the land and if any liens exist that need to be paid at closing.
Paid to the title company for the preparation of closing documents and other administrative fees.
Recording Fee for Satisfaction of Mortgage (if applicable)
Collected by the title company to pay for the recording of the satisfaction of the seller’s mortgage. Recording fees can vary by county.
Documentary Stamps Taxes
Taxes on the transfer of ownership or interest in real estate transactions (0.7% of the purchase price)
Tax and HOA Prorations & HOA Estoppel Fee
A seller will pay the HOA dues and property taxes for the portion of the year that he/she occupied the property.
Estoppel fee is collected by the title company and paid to the Homeowner’s Association along with the request for an outline of association dues, whether or not the current owner is up to date and what the new owner will be responsible for.
Municipal Lien Search Fee
Paid to the title company so that they can order a municipal lien search on behalf of the buyer. A municipal lien search will investigate matters not recorded or related to title such as utilities, expired permits, code violations, etc.
A seller may agree to pay for a home warranty for the buyer, negotiated repairs, a portion or all of a buyer’s closing costs, etc.