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Seller's Legal and Financial Obligations

A seller has a number of legal and financial obligations when selling a home. A collapsed sale due to this lack of knowledge could definitely bring on a case of seller's remorse. Speak with your real estate agent if you are unsure of your legal and financial obligations. The list below will also give you an idea of a seller's obligations:

Obligations

There are a number of obligations that are a seller's responsibility and these may vary by state:

• Real Estate Commissions - The fee paid to the real estate agent who helped you sell your home.


• Escrow - The escrow fees can include a basic escrow handling charge, document preparation fee, and notary fee.


• Documentary Transfer Tax to the County - This tax is specific to the State of California. It is computed on $.55 per $500 of sales price on full cash transactions. Note: It is not computed as $1.10 per thousand.


• Pest Inspections - The cost to obtain a pest inspection for the house.


• Pest Completion - The cost of work required to issue a clear pest report for the house for sale.


• Natural Hazard Disclosure - A geological and environmental report about the ground the house sits on and the area around it.


• Home Warranty - Cost of a one-year home warranty plan for the buyer, which ensures that the buyer will be able to live in the home without any major repairs needed for one year.


• Roof Certification - A fee for certifying the roof for two to three years.


• Repairs - Contractor invoices or buyer credit for repair work on the house.


• Utility - Another obligation that is particular to certain places, this fee is for any utility bills that are sent in escrow. In some states, water bills and other utilities are considered as "running with the property" and are not reported to title or escrow.


• Buyer Closing Cost Credit - A negotiable sum agreed upon in the purchase contract to pay for buyer's closing costs.


• Other Buyer Credits - Miscellaneous fees that can include mortgage buy-downs or other fees paid on the buyer's behalf as part of the purchase contract. These obligations must be in the purchase contract to be paid by the seller.


• Real Property Taxes - Pro rata portion of taxes not yet been paid on the house.


• Homeowner Association Fees - When applicable, a document preparation charge, as well as a pro rata portion of monthly homeowner association dues not yet paid by the seller of the house.


• Transaction Coordinator - This is a fee paid to the individual or company handling the transaction paperwork and seller disclosures.


• Loan Payoffs - This is when the beneficiary demand sets forth the amount due to pay the existing loan(s) in entirety.


• Title - A fee that is paid for the buyer's new owner title policy.


• Transfer Fees - Some cities can charge a fee to transfer the home from one person to another, and example of which is that the City of Sacramento charges .275% of 1% of the sales price. While this is a negotiable fee, the seller usually pays for it.


• Delivery or Courier - These fees are miscellaneous fees and expenses for shipping or transporting documents when necessary.


• Recording - Recording fees are fees that pay for the record of the property deed in the public record and any other documents required to clear title.


• Wire - This is the fee is paid to the entity for wiring the seller's net profits from the sale of the house to the seller's bank.

There may be other obligations for sellers out there depending on your state, county, and city regulations for real estate. Always check with a Realtor® like Karyn and Kimberly Schonherz at 714-283-6653 for any lingering obligations that you might have as a seller so that your transaction goes smoothly.

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