Home Selling in 94587>Question Details

Unioncity, Home Seller in 94587

What closing costs other than County Transfer tax are customary for a seller to pay in California?

Asked by Unioncity, 94587 Mon Dec 14, 2009

Is it customary for the seller to pay for a home protection plan in California?
How about charges for the information packet from the homeowners association to the new buyer?

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Answers

8
Hello Union City Home seller,

In California we have several counties. Every county may have different standard practice (customary) as to who pays what. Buyers have their own closing cost to pay and sellers have their own closing cost to pay.

In my experience every thing is negotiable. It also depends on the price the buyers are offering. If buyers are offering handsome monies to sellers, sellers would not mind paying all the buyer’s closing costs. Sellers paying credited buyers closing cost may be tax deductible for them.

It is our local industry practice for sellers to pay for home protection plan unless it’s a
REO (bank owned property) or a short sale. The home protection plan name itself defines it. It going to protect the sellers in case of any (not all, they don’t write a blank check) issues or problem arises in the first year of the close of the escrow date.

You do have itemized list of sellers cost form another agent.
I can send you an excel format to calculate your net (sellers net) if you like.
To get it please feel free to email me at CharoBhatt@gmail.com or call at 510-381-2105

Good luck to you,

Charo Bhatt
510-381-2105
CharoBhatt@gmail.com
http://www.HomesByCharo.com
5 votes Thank Flag Link Mon Dec 14, 2009
Closing costs are negotiable, however there are standard costs for both the buyer and seller.

Seller's often pay for Home Warranty, Geo. Report, County transfer taxes, 1/2 city transfer tax (if any), 1/2 HOA fees

Buyers often pay for loan fees, reports/inspections, 1/2 HOA fees, title & escrow fees.

I hope this helps,

Brian Ripp
Broker
Realtor since 1985
1 vote Thank Flag Link Mon Dec 14, 2009
Everything is negotiable. It is customary for sellers to pay County Transfer Tax and provide a Natural Hazards Report. There is no city transfer tax in Union City. As a buyers agent, I usually ask the seller to provide a standard 1 yr home warranty. When it comes to HOAs, I usually ask the seller to pay the doc prep fees and have the buyer pay for transfer fees.

-Steven Michael Fong
REALTOR
Sunil Sethi Real Estate
Fremont, CA
Web Reference: http://www.sunilsethi.com
0 votes Thank Flag Link Tue Apr 27, 2010
Customs vary by area, however in general the seller pays for the home warranty so the buyer does not complain to them about problems after the sale.

HOA minutes should be provided by the HOA association. For liability reasons it is best for the seller to pay to have the minutes and documents of the HOA handled by a third party and pay for the services.

Should the seller opt to make copies of HOA docs and give them to the buyer, the seller would likely be liable if for any reason there were documents later found to be missing, inaccurate, or incomplete.
0 votes Thank Flag Link Mon Dec 14, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Closing costs can vary somewhat but the answers that you see here cover closing costs pretty well.

If your real question is: “What do I have to pay in regard to closing costs?” then my answer is that certain disclosures are required by law and may entail a payment on your part to provide them (Natural Hazard Disclosure, for example); certain costs are the responsibility of the seller (property taxes until the property changes hands, sellers loan payoff costs, for example); certain costs are typically paid by the seller, but can be negotiable (home warranty, for example); certain costs are typically split between buyer and seller; certain costs are typically paid by the buyer, but may be negotiable.

Are you being asked to provide a credit to your buyer to offset some or all of the buyer’s closing costs? This is not unusual in our market today.

Your agent, because it seems like you probably have one, should be consulted.

If you do not have an agent, I guess this would be a prime example of why you should have one.

Any of the agents who have already answered you question can be of help to you if you need an agent. Give one of us a call.
0 votes Thank Flag Link Mon Dec 14, 2009
Hi Unioncity,

“What closing costs other than County Transfer tax are customary for a seller to pay in California?”
Nothing is set in stone when it comes to closing costs. Closing costs are always negotiable, and are dependent on whether there is a seller or buyer's market, how badly the buyer wants the home, how motivated a seller is to sell their home, etc.. This said, rarely will you get a seller to pay title insurance for the Buyer's lender.

Even though Closing Costs are negotiable, there are voluntary “customary splits” that can occur. This tends to differ between Counties, which can be viewed here:
http://docs.Steven-Anthony.com/ClosingCostsGuide.pdf


“Is it customary for the seller to pay for a home protection plan in California?”
Home Warranty plans are not a requirement, although they are a smart thing for a Seller to provide a Buyer to reduce post-contract liability. I always suggest the Seller pay for one.


“How about charges for the information packet from the homeowners association to the new buyer?”
I view this as a Seller disclosure required by CA Civil Code, and hence, request these fees be paid by the Seller.

Best, Steve
0 votes Thank Flag Link Mon Dec 14, 2009
Seller’s costs for Alameda County for cities that DO NOT have a City Tax (such as Union City):

• County taxes – any currently owed taxes up until the close of escrow
• Prepayment penalties on loans if applicable
• Demand and re-conveyance fees on loans if applicable
• Other lender fees such as wiring fees, etc.
• Drawing and/or notary fees
• Commissions
• County transfer tax ($1.10 per $1,000.00 of selling price)
• Currently due HOA fees if applicable
• HOA transfer fee if applicable – sometimes split 50/50
• HOA doc fee if applicable – sometimes split 50/50
• Natural Hazard Report and CLUE report – approximately $120.00
• Any corrective work as specified by the contract
• Home Warranty – normally approximately $400.00
• Credits to buyer for closing costs if applicable
0 votes Thank Flag Link Mon Dec 14, 2009
Hello Union City,

It's different in every county. In Alameda county, the seller usually pays for the County transfer taxes and 1/2 of any city taxes.

Best regards,
Elva
0 votes Thank Flag Link Mon Dec 14, 2009
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