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Settlement


	Who Pays What

	During the negotiation state of the transaction, a mutually agreed-upon date for closing is determined. “Closing” is when you and the buyer sign all the paperwork and pay your share of the settlement fees, and the documents are recorded. Settlement obligations vary widely due to specific contract language, local laws and customs.


	Prior to closing, the closing agent (usually an escrow or title company or attorney) will complete a detailed settlement statement for both buyer and seller. We can help you understand which of the following typical settlement fees apply to you.

	*The seller receives:*

Utility deposits held by gas, electric, cable, telephone and other companies

Prorated portion of pre-paid property taxes

Prorated mortgage interest from payments made during the current month

Fuel rebate for oil or propane remaining in the storage tank

Net proceeds after seller’s share of expenses is paid


	*The seller pays:*

Brokerage commission (the sum or percentage of the sale price previously agreed upon by the seller and real estate agent

One-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing (In California, the party paying escrow fees varies from county to county)

Document preparation fees

Recording and notary fees

Title search and title insurance (paid by either the seller or the buyer)

Local transfer taxes, if any

State taxes, if any

Repairs or inspections seller has agreed to pay






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