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Closing Cost Definitions

ESCROW FEES WHO PAYS
Escrow Fee Escrow: to buyer & Seller Covers liability assumed as well as standard processing costs.
Demand Fee Escrow: to seller Charge to request a statement & process involved in getting a payoff figure to escrow on the outstanding amount of the current loan.One demand fee per loan.
Escrow: to Buyer & Seller Fee for processing required to assign membership for HOA and copying governing documents.
Document Fee Escrow: to buyer Covers the cost of all processing required to meet new lender requirements.
Loan Tie In Fee Escrow: to buyer Covers the cost of all processing required to meet new lender requirements.
Federal Express Federal Express: to Buyer For document packages to out of County Lenders.
TITLE FEES WHO PAYS
Owner’s Title Policy Title: To Seller Fee for the Owner’s Policy. Calculated using the sales price. Insures that the title is as agreed to at closing.
Lender’s Title Policy Title: to Buyer Title policy issued to lender to cover the amount of the loan. Based on the loan amount unless it is a negative amortization loan.
Sub-Escrow Fee Title: to Buyer & Seller Fee to administer the payoff of loans and/or property taxes of the seller and collection of funds from new lender
Document Transfer Tax County, City: to Seller Fee charged on all properties that transfer title-based on sales price.
Record Release/Reconveyance County: to Seller Charge to record the release/reconveyance
Federal Express Federal Express: to Buyer & Seller Charge to deliver all time sensitive documents.
Title/Wire Fee Banking Institution: to Seller Charge to wire funds to Escrow, Seller, Lender, etc.
Electronic Recording(Shipping & Handling) County: to Buyer Charge to electronically record documents/monies
Record Grant Deed County: to Buyer Charge to record the Grant Deed.
Record Trust Deed County: to Buyer Charge to record the Trust Deed.
Messenger Messenger Service: to Buyer & Seller Charge to special messenger documents during the course of escrow, fee varies with distance.
Lender’s Endorsement Title: to Buyer Charge for endorsements required by lender to cover “outside the normal” risk circumstances.
LENDERS FEES WHO PAYS
Origination Fee Lender: to Buyer charge for lending money at 1% of the loan amount.
Documentation Preparation Lender: to Buyer Paid to Lender for preparation of loan documents.
Tax Service Tax Service: to Buyer Fee charged to Buyer to set-up property taxes with the state.
Wire Banking Institution: to Buyer Charge for the wiring of funds to title for closing.
Flood Certification Lender: to Buyer Fee for investigation to determine if the subject property is located in a flood hazard zone.
Underwriting Lender: to Buyer Fee to direct lender for process of approving.
Tax Impounds Lender: to Buyer Collected to create an impound reserve account for the lender to pay property taxes twice a year.
Insurance Impounds Lender: to Buyer 1 year + 2 months Hazard Insurance collected for impound reserve account.
Appraisal Fee Appraiser: to Buyer Paid directly to Fee Appraiser for appraisal of property.
Credit Report Lender: to Buyer Paid to Credit Bureau for report containing 3 repositories Experian, Equifax and Trans Union.
Processing Lender: to Buyer Paid to mortgage broker for processing loan package from application to closing.
DISBURSEMENTS WHO PAYS
HOA Transfer Fee HOA Management Group: to Buyer To Transfer ownership and handle new accounting set-up.
HOA Dues HOA Management Group: to Seller Paid through month of closing.
Fire Insurance Insurance Agency: to Buyer 1 year pre-paid premium for Homeowner’s Insurance.
Notary Notary: to Buyer Charge to Seller for signing of Grant Deed or Certification Of Trust. Buyer needs notary for signing loan documents.
PAYOFFS WHO PAYS
Recording Fee Existing Lender: to Borrower Charge for reconveyance recorded.
Statement/Forwarding Fee Existing Lender: to Borrower Charge for issuing a payoff statement.
CREDITS AND PRORATONS WHO PAYS
HOA Dues Seller: to Buyer Calculated from date of COE through month-end.
County Property Taxes Seller: to Buyer Calculated from date of payoff through end of period paid, for example: COE = 5/30, Calculate as 5/31-6/30 times the cost of taxes per day.