OTHER CHARGES

Document preparation

Recording

Broker’s commission

Title insurance

 

Document preparation                 

It is customary for the person who has to sign a document to pay the cost of preparing it. Thus, the seller pays for preparing the deed, and the buyer pays for preparing the mortgage and note.  Each item will appear as a debit to the paying party on the closing disclosure, with no corresponding credit to the other party.

Recording                   

The party who wants a document recorded customarily is the one who pays the fee for recording it. Thus the buyer pays for recording the deed, even though the seller paid for preparing it. Again, the fee will appear as a debit to the paying party on the closing disclosure.

Broker’s commission

The listing or representation agreement establishes who pays commissions, but it is common that the person who employs the broker is the one who pays. The commission is a debit to the paying party on the closing disclosure.

Title insurance            

There are fees and charges for title-related items such as providing a title abstract or an opinion of title. There are also costs associated with the purchase of a lender’s title insurance policy and an owner’s title insurance policy. The question of who pays these charges is open to negotiation.