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 buyerâ€™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 itâ€™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 donâ€™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,
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,
Realtor since 1985
-Steven Michael Fong
Sunil Sethi Real Estate
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.
If your real question is: â€œWhat do I have to pay in regard to closing costs?â€ 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 buyerâ€™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.
â€œWhat closing costs other than County Transfer tax are customary for a seller to pay in California?â€
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 â€œcustomary splitsâ€ that can occur. This tends to differ between Counties, which can be viewed here:
â€œIs it customary for the seller to pay for a home protection plan in California?â€
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.
â€œHow about charges for the information packet from the homeowners association to the new buyer?â€
I view this as a Seller disclosure required by CA Civil Code, and hence, request these fees be paid by the Seller.
â€¢ County taxes â€“ any currently owed taxes up until the close of escrow
â€¢ Prepayment penalties on loans if applicable
â€¢ Demand and re-conveyance fees on loans if applicable
â€¢ Other lender fees such as wiring fees, etc.
â€¢ Drawing and/or notary fees
â€¢ County transfer tax ($1.10 per $1,000.00 of selling price)
â€¢ Currently due HOA fees if applicable
â€¢ HOA transfer fee if applicable â€“ sometimes split 50/50
â€¢ HOA doc fee if applicable â€“ sometimes split 50/50
â€¢ Natural Hazard Report and CLUE report â€“ approximately $120.00
â€¢ Any corrective work as specified by the contract
â€¢ Home Warranty â€“ normally approximately $400.00
â€¢ Credits to buyer for closing costs if applicable
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.