Who Pays Closing Costs

8 posts by 7 users

David Littleton

Renter from Kentucky

Feb 15 '13, 07:51 AM

I'm assuming in an assignment, the buyer you assign it to will ay closing, but who pays closing in a double escrow?

Karen Margrave Moderator

from Orange County, California

Feb 15 '13, 08:06 AM

@David Littleton Each state and even area is different. We always write the contract so that it's 1/2 each.

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Bill Gulley

Real Estate Investor from Springfield, Missouri

Feb 15 '13, 08:17 AM

Negotiate it, anywhere, except that a borrower must be shown as paying pre-paids on many loans, other than that...whtaever, it usually goes to local custom if not contracted. :)

Arktavious Sally

Real Estate Investor from Upper Marlboro, Maryland

Feb 15 '13, 02:03 PM

@David Littleton It all depends on how the deal is structured and what is customary in your state. Here in Maryland it's customary for seller and buyer to split closing cost because fees are around 3%. But again, it can be negotiated..

Bill Gulley

Real Estate Investor from Springfield, Missouri

Feb 17 '13, 07:13 AM
1 vote

There are limitations people, if your buyer is getting a secondary market loan, the seller may not pay just anything. That's in any state. The seller can compernsate for pre-paid items in some ways but credits won't save expenses and plays on the loan to value.

Michael Quarles Video Donor

Real Estate Investor from Bakersfield, California

Feb 17 '13, 10:19 AM

Great answers however bottom line is the buyer in almost all situations is paying the costs. Whether they're on the sellers HUD1 as expenses or not.

Closing costs are like Realtor commission in that they are authorized by the seller however they're coming out of the proceeds the buyer gives the seller.

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