5. Property Tax
Some municipalities require new homeowners to pay applicable property taxes within the first two months (60 days) of ownership. In such cases, these taxes are usually paid up front at closing.
In most jurisdictions, such property taxes apply to both buyers and sellers. Thus, both parties can expect to incur this cost if it applies.
4. Survey Fees
Another administrative aspect of the home pre-sale process involves professional surveying. During this step, a surveyor visits the property to determine its boundaries in order to prevent future disputes with neighbors.
This service is performed by a local professional, who gets compensated through an itemized closing cost.
3. Title Search Fees
A background title search is a standard part of the real estate transaction process. During this phase, a title agency examines public records to see if there are any outstanding claims or liens on the property being sold.
The fee for performing this vitally important research is usually shared by the buyer and seller. It is processed at closing.
2. Transfer Taxes
In many states and cities, taxes apply to the transfer of property ownership from one party to another. Sellers usually pay this fee, though some jurisdictions pass it on to the buyer or split it between the two parties.
No matter what the case, any due title transfer taxes are charged at closing.