Page 22 - Home Buyers and Sellers Handbook English - California

G Closing Costs

The buyer and seller will pay “closing” or settlement costs, an accumulation of separate charges paid to different
entities for the professional services associated with the buying and selling of property.

Some closing costs might include real estate commissions, appraisal fees, loan fees, escrow charges, advance
payments like property taxes (city and county), hazard insurance, title insurance, pest inspections, etc.

Keep in mind that your closing funds should be wired or provided in the form of a cashier’s check made payable
to Old Republic Title.
Examples of Additional Closing Costs:

• Title insurance premiums • Documentation preparation fee for transferred deed
• Escrow and notary fees • Fire insurance premium for first year impounds,
• Documentation preparation fee if applicable
• Recording charges for all documents in buyer’s name • Payoff of all loans in seller’s name (or existing loan
• Interest on new loan from date of funding to 30 days balance if being assumed by buyer)
prior to first payment • Interest accrued to lender being paid off, statement
• Inspection fees (property, roof, geological) fees, reconveyance fees and any prepayment penalties
• All new loan charges (except those required by lender • Termite work (according to contract)
for seller to pay) • Natural hazard disclosure report
• Tax proration from date of acquisition • Any judgments, delinquent taxes, tax liens, etc.
• Assumption/change of record fees for take over of against seller
existing loan • Tax proration (for any unpaid taxes)
• Beneficiary statement fee for assumption of • Recording charges to clear all documents of record
existing loan against seller
• Homeowners association transfer fee • Any bonds or assessments
• Home warranty (according to contract) • Any unpaid homeowner’s dues, homeowner’s
• Any city transfer tax/conveyance tax (per custom)* document and demand fees
• Real estate commission • Documentary transfer tax
(*Based on City/County of where property is located. Check with your Real Estate Professional.)
COMMON PROPERTY TAXES
City Transfer Tax
Tax paid to the local government as a percentage of the property’s value. The amount of the tax is usually
based on a percentage of the property’s selling price, but the exact amount is determined by the city where the
property is located.
County Transfer Tax
Tax paid to the county or local government as a percentage of the property’s value. The amount of the tax is
usually based on a percentage of the property’s selling price, but the exact amount is determined by the county
where the property is located.

19