Who Pays Closing Costs

8 posts by 7 users

Medium 1399669677 avatar davidlittleton David Littleton
Renter KY
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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?



Medium 1412209793 avatar brighterdays Karen Margrave
Brokers-Developers-Licensed G.C. from Orange County, CA
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Karen Margrave Moderator

Brokers-Developers-Licensed G.C. 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.



Medium tmg  1 Karen Margrave, The Margrave Group #00636992
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Medium 1448386327 avatar financexaminer Bill Gulley
Investor, Entrepreneur, Educator from Springfield, MO
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Bill Gulley

Investor, Entrepreneur, Educator 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. :)



Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy
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Medium 1399032421 avatar nthagame Arktavious Sally
Real Estate Investor from Upper Marlboro, MD
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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..



Medium 1448388825 avatar stevebabiak Steve Babiak
Real Estate Investor from Audubon, PA
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Medium 1448387771 avatar ncarey Ned Carey
Investor from Baltimore, MD
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Bill Gulley

Investor, Entrepreneur, Educator 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.



Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy
Website: https://generalrealestateacademy.com


Medium 1451104997 avatar michaelquarles Michael Quarles
Investor from Bakersfield, CA
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Michael Quarles Video Donor

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.



Medium 12508820 795950820515167 766055113351596216 nMichael Quarles, The Michael Quarles Real Estate Show
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