The fees associated with a housing transaction are listed below.
Deed transfer tax
May be paid by the seller, the buyer or both.
Transfer taxes are paid for the purpose of transferring the contract to the new owner, and the buyer and seller can negotiate who will bear them.
State, county, and city individual transfer taxes sometimes add up to quite a large amount. In some areas, the total amount can be as high as nearly 5% of the purchase price.
In some places, such as New York State, this percentage even increases as home prices rise, so many people will renegotiate the sale price.
Registration Fee
Can be paid by the seller, the buyer or both.
State and local governments may impose this fee in order to file deed and mortgage information in the public records.
In many areas the transfer tax and recording fee are the same, and some are calculated separately.
The transfer tax is calculated as a percentage of the sale price and the recording fee is usually a fixed amount.
Title Search and Title Insurance
Usually paid by the buyer.
A title search is when it is important for the buyer to make sure there are no liens or other statements of ownership before taking title.
As for title insurance, it protects the buyer in the future from others claiming to have title and usually covers the cost of a property search.
Insurance premiums typically range from $1,000-$2,000 depending on the value of the property.
Closing Costs
Paid by the buyer or seller.
A title insurance company, escrow agent or attorney may handle the transfer of funds from the sale of the property for an additional transaction fee.
Settlement fees are typically included in the title or attorney's fee and are at least a few hundred dollars.
Loan Application Fee
Usually paid by the buyer.
Some lenders levy this fee, usually only $25, when processing a mortgage to ensure that the buyer is serious.
Loan Origination Fee
Usually paid by the buyer and covers the costs associated with the underwriting process and is about 1% of the total home value.
