Real Estate Commissions
State Excise Tax
Deed Recording Fee
Pro-rated Yearly Property Taxes
- Real Estate Commissions: The commission is negotiated with the seller when they list their home. Generally, it is 6% of the sales price, split between the listing and selling agent, and paid at the time of closing from the seller’s proceeds of the sale.
- State Excise Tax: This is tax charged by the state anytime real estate is transferred, currently 1.78 % of the sales price.
- Title Insurance: Two policies are purchased: one by the buyer to protect the lender, and one by the seller to protect the buyer. Title insurance is for the protection of all parties in the event that a future claim is made against the property.
- Deed Recording Fee: Normally, the county charges $50.00 for the recording of the deed.
- Escrow Fee: This is the fee charged by an independent third party to close the transaction. The buyer and the seller share this fee.
- Pro-rated Yearly Property Taxes: Annual property taxes are paid by the homeowner twice a year, in October and April. The escrow company pro-rates the taxes for the closing date to ensure that neither the buyer nor the seller overpay.