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April 11, 2012

Buying or Selling a Home

The Closing

What are some financial aspects of the closing?

At the time of closing, the seller and buyer will total up various credits in order to determine how much money the buyer must pay. The seller will receive credits for such items as fuel on hand (such as oil in the home heating tank), unused insurance premiums, prepaid interest, and escrow deposits for insurance, taxes, and public utility charges such as water and sewer fees. These credits also will include any other items prepaid by the seller that will benefit the buyer.

The buyer normally will receive credits for such items as the earnest money deposited and taxes or special assessments that the seller has not paid. The settlement sheet also will specify who is responsible for the payment of various expenses. These will include the sales commissions and the costs of the title search, inspections, recording fees, transaction taxes, and the like.

The allocation of such expenses will depend on the terms of your contract as well as the law and customs in your area. Your real estate agent or attorney should advise you ahead of time of how much money you will need at the closing. Typically, you will be required to have a certified check in the amount required to meet these expenses.

>>What happens at the closing?
>>What is the closing statement?
>>What are some of the key documents signed at the closing?
>>What are some financial aspects of the closing?
>>What are some typical closing costs?
>>There can’t possibly be any more closing fees, can there?

Practical Law Home | Buying or Selling a Home | Basics of Buying a Home
Basics of Selling a Home | Why Real Estate Is Covered By Special Laws | Real Estate Brokers
The Purchase Contract | Financing a Home Purchase | *The Closing* | The Fair Housing Act
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