Saturday, March 26, 2011



Selling your home may seem simple, but there are taxes, fees, insurance and other expenses that buyers and sellers must prepare for.

Here is a list of the traditional distribution of expenses in Montgomery County, MD. Certain regions of the country and state vary in these customs. Keep in mind that some of these items are negotiable by both parties at the time of the offer, excluding some expenses required by the State and lender to be paid specifically by the seller.

The BUYER typically pays:

Notary fees
Escrow Fees
Document preparation (if applicable)
Recording charges for all documents in buyer’s name
Termite inspection
Tax pro ration
Homeowner’s transfer fee
All new loan charges (except those required by lender for seller to pay)
Interest on new loan from date of funding to 30 days prior to first payment date
Assumption /Change of Records fees for take-over of existing loan
Beneficiary Statement fee for assumption of existing loan
Other Inspection fees (roofing, property inspection, geological, radon, etc.)
Home Warranty
Lender’s policy
Fire Insurance Premium for first year
Broker Administrative fees
50% of State and County Transfer & Recordation Taxes
Title Insurance Premium: Owner’s Policy/Lender's Policy
HOA fees

The SELLER typically pays:

Real estate commission
Escrow fees
Notary Fees
Any bonds or assessments
Recording changes to clear all documents of record against seller
Any unpaid homeowner’s dues
Broker Administrative Fees
Tax pro ration (for any taxes unpaid at time of transfer of title)
Home Warranty
Any judgments, tax liens, etc. against the seller
Statement Fees, re conveyance fees, and and prepayment penalties
Interest accrued to lender being paid off
Payoff of all loans in seller’s name (or existing loan balance if assumed by buyers)
Any loan fees required by buyer’s lender
Document preparation fee for deed
Applicable city transfer/conveyance tax
50% of State and County Transfer & Recordation Taxes
Final electricity, water, gas, oil, cable bills.
Current updated HOA docs for the buyer's inspection

These are the main expenses and fees that need to be considered by the Seller and the Buyer. If I seem to have missed something, or you want to discuss or ask questions, please leave a comment below or phone Paul for further clarifications and estimates for your own purposes and situation. He will be happy to explain them to you. We aim to make your home sale and purchase as clear and simple and profitable as possible for you!

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