After successfully completing this topic, you will be able to describe other charges to the buyer and the seller in a real estate closing.
Typically, the person who signs the document pays for the preparation. The seller signs the deed, and pays for preparation of the deed. The buyer signs the note and mortgage, and pays for their preparation. When a party is charged for an item, it is shown in the closing statement as a debit.
After closing, the deed and the mortgage documents are recorded. The buyer usually pays the recording fees.
Typically, the seller pays the broker’s commission whether a buyer is using a single agent buyer’s broker. The commission is usually a percentage of the sale price, but could also be simply a flat fee.
The sales contract will show whether the buyer or the seller pays for title insurance, although it’s usually a buyer’s cost. When financing is involved, the lender will require a lenders’ title policy. It’s a good idea for the buyer to pay for a simultaneous issue of an owners’ title policy.