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.
About the author
Keith Kyle
Top local realtor in Torrance and Redondo Beach. Serving the wonderful communities of Torrance, Keith has helped both buyers and seller with all of their real estate needs with a low pressure approach, extensive local knowledge, and over 8 years as a top realtor with South Bay Brokers.

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