Closing Costs – Who Generally Pays What In a Torrance CA Escrow
Keep in mind that the charts below are based on the standard allocation of costs in Torrance. As with any detail of buying a home everything is negotiable including who pays what costs during the transaction. In addition not all of these costs exist in every transaction and many are dependent on the lender, escrow company and the details of the offer.
Title Fees
| Cost |
Customarily Charged By/To: |
Description |
| Owners Title Policy |
Title:To Seller |
Fee for the title policy. Calculated using the sales price.May be reduced if home was purchased or refinanced inthe last 5 years. Insures that the title is as agreedto at closing |
| LendersTitle 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 amortizationloan. |
| Sub Escrow Fee |
Title:to Buyer & Seller |
Fee to administer the payoff of loans or property taxes of the seller and collection of funds from the new lender |
| Document Transfer Tax |
County: to Seller at $1.10 per thousand of sales priceCity: No transfer tax in Torrance |
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/Messanger Fees |
Federal Express: to Buyer & Seller |
Charge to deliver all time sensitive documents and monies |
| Title/Wire Fee |
Banking Instituion: to Buyer & Seller |
Charge to wire funds to escrow, seller, lenders, etc |
| Electronic Recording |
County: to Buyer |
Charge to electronically record the document |
| 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 and Seller |
Charge to special messenger documents during the escrow: Feevaries with distance |
| Lender’s Endorsement |
Title: to Buyer |
Charge for endorsements required by lender to cover “outsidethe normal” risk circumstances |
Escrow Fees
| Cost |
Customarily Charged By/To: |
Description |
| Escrow Fee |
Escrow: Each pays own |
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 figureto escrow on the outstanding amount of the current loan. One demand fee per loan. |
| Process HOA Docs & Transfer Fee |
Escrow: Seller |
Fee for processing required to assign membership for HOA a& copying all 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. |
Lender Fees
| Cost |
Customarily Charged By/ To |
Description |
| 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 final loan documents |
| Tax service |
Tax Service: to Buyer |
Fee charged to buyer to set up property taxes with the state |
| Wire |
Banking institution |
Charge for the wiring of funds to title for closing |
| Underwriting |
Lender: to Buyer |
Fee to direct lender for the process of approving |
| Tax impounds |
Lender: to Buyer |
Collected to create an impound reserved account for the lender to pay property taxes twice a year |
| Prepaid Insurance |
Lender:to Buyer |
Generally 1yr of hazard insurance collected for impound reserveaccount |
| Appraisal |
Appraiser:to Buyer |
Paid directly to appraiser for appraisal of property |
| Credit Report |
Lender: to Buyer |
Paid to credit bureau for report containing 3 credit scores |
| Processing |
Lender: to Buyer |
Paid to mortgage broker for processing loan package from application to closing |
Disbursements
| Cost |
Customarily Charged By/ To |
Description |
| HOA Transfer Fee |
HOA Management: to Buyer |
To transfer ownership and handle new accounting set up |
| HOA Dues |
HOA Management: to Seller |
Paid through month of closing |
| Fire Insurance |
Insurance Agency: to Buyer |
1 year prepaid premium for Homeowners insurance |
| Notary |
Notary: to Buyer |
|
Payoffs
| Cost |
Customarily Charged By/ To |
Description |
| Recording Fee |
Existing Lender: to Borrower |
Charge for having reconveyance recorded. |
| Statement forwarding fee |
Existing Lender: to Borrower |
Charge for issuing a payoff statement |
Credits and Prorations
| Cost |
Customarily Charged By/ To |
Description |
| HOA Dues |
Seller: to Buyer |
Calculated from date of COA through month-end |
| County Property Taxes |
Seller: to Buyer |
Calculated from the date of payoff through end of period paid for. |
