KPG Seller’s Closing Costs

In a real estate transaction, sellers closing costs are the fees associated with the sale of your home.  Below are a list of some of the most common closing costs paid by the seller.  Keep in mind that the party responsible for each closing cost fee is negotiable.

  • Fees Paid to Title Company
    • It is very common that the seller selects a the title company and is responsible for payment of the title insurance policy and OEC (Owner’s Extended Coverage).  The title company will handle the closing for a fee, and prepare all the costs of the transaction, and ensure the property is free and clear of title defects.
    • Summary of Title Fees:
      • SELLER: Title insurance and OEC is typically paid by seller in full
      • SPLIT:Closing services fees charged by the title company (recording & file preparation fees) are usually split between the Buyer & Seller.
  • Government costs
    • Local Transfer Tax is a tax levied by the municipality the property resides in and not all municipalities have local transfer tax  Most often these are not paid by the seller.  Estimated Water & Sewer fees are usually paid by the seller.  These estimated fees are paid in advance and placed in escrow as water providers are allowed to place a lean on the property.  Since Colorado pays property taxes in arrears, the seller will be responsible to pay a prorated amount for the property taxes owed for the ownership period.
      • BUYER:Local Transfer Tax is typically paid by the buyer.
      • SELLER: Estimated Water & Sewer fees are mostly paid by the seller
      • SELLER: Prorated property taxes are usually paid by the seller.
  • Owner’s Association Fees
    • A homeowner’s association may require Private Transfer Fees and will also require that the seller pay a prorated amount of the maintenance charges for the duration of occupancy or ownership.  Additionally, the seller is typically responsible for the full payment of any special assessments that were initiated during the ownership – even if the assessments are distributed over time.  Finally, the owners association may require a Status Letter and Record Change fee.
      • SELLER: Private Transfer fees are usually paid by the seller.
      • SELLER: Prorated maintenance fee
      • SELLER: Special assessments are paid in full at the time of closing and are typically paid by the seller.
      • SELLER: Homeowner’s document preparation and distribution fees are usually paid by the seller.
  • Lending Fees
    • Conforming loans DO NOT have an early termination fee, but please check your mortgage as an early termination fee would add another closing cost.  If you are refinancing another property as a result of the sale, closing costs of the new loan would also become a closing cost.

Usually, the Seller, the Buyer, and both Real estate agents are sitting together to complete the transaction at the closing table.

Three days prior closing you should receive a document called CLOSING DISCLOSURE with a recap of all the financial terms of the transaction.

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