Who Pays for What in Escrow

Closing Costs – Who Generally Pays What In a Torrance CA Escrow

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 in
the last 5 years. Insures that the title is as agreed
to at closing

Lenders
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 or property taxes
of the seller and collection of funds from the 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 and monies

Title/Wire
Fee

 Banking
Instituion: to 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: Fee  varies with distance

Lender’s
Endorsement

 Title:
to Buyer		 Charge  for endorsements required by lender to cover “outside the normal” risk circumstances

Escrow Fees

Cost
Customarily
Charged By/To:
Description

Escrow
Fee

Escrow:
to Buyer & Seller		 Covers  liability assumed as well as standard processing costs.

Damand
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.

Process
HOA Docs & Transfer Fee

 Escrow:
to Buyer & 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
requireents

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

Insurance
impounds

Lender:
to Buyer		 1yr  + 2 months hazard insurance collected for impound reserve  account

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 Seller To  transfer ownership and handle new accounting set up

HOA  Dues

HOA Management: to Seller Paid  through month o closing

Fire  Insurance

Insurance Agency: to Buyer 1  year prepaid premium for Homeowners insurance

Notary

 Notary:  to Buyer Charge  to seller for signing of grant deed or certificatin

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.
in Buyers, Escrow Process, First Time Buyers, Sellers Posted by Keith Kyle