Buyer's Closing Costs

ESCROW CHARGES

•Escrow Fees: These fees vary from company to company and with the complexity of the
transaction, but can generally be estimated around $3,000.
•Base Fee: $150-$300, plus $1.50 - $3.00 per $1,000 of total purchase price. This does not
include any miscellaneous charges, i.e. drawing documents, additional services or messenger
fees.
•Loan Tie-in Fees: These fees are charged in connection with a new loan. A fee of $1.00 per
$1,000 of the new loan amount, with a minimum charge of $150.00 and a maximum of $500.00.
•Beneficiary / Assumption Fee: $100.00-$200.00 charge in connection with the assumption of
the existing loan.

TITLE CHARGES

•Recording Fees: $14.00 for the first page plus $3.00 for each additional page.
•ALTA Home Owner’s Policy: Required by lender; rate schedule based on amount of new loan.
•Sub-escrow Fees: $95 - $125.00 charged in connection with new loan.

LENDER CHARGES FOR NEW LOAN

•Points and Loan Fees: A “Point” is a fee charged by the Lender and is a percentage of the
loan amount. One (1) point is 1% of the new loan. One (1) point on a $200,000 would be $2,000.
Loan Fees cover charges for such items as, underwriting, administrative and processing fees
and drawing of documents. Loan Fees and Points vary significantly depending on the Lender,
current interest rates and the loan program chosen.

•Credit Report: $15- $150
•Appraisal: $200-$1,000, based upon the size of the property

PRELIMINARY CHANGE OF OWNERSHIP

The Los Angeles Recorder charges a $20.00 fee if the form is not completed properly and/or if the
form is not submitted at the time of recordation of the Grant Deed. The form must be filed with
the county within 45 days after recording to avoid a penalty.

MISCELLANEOUS

•Messenger, Wire Transfer & Cashier’s Check fees – vary depending on situation; reimbursement
on a dollar-for-dollar basis is required.

It is wise to add a cushion of approximately $400-500 for any unexpected costs that may arise.
•Miscellaneous Fees: Including, but not limited to, photos, wire fees, flood check fee, trustee’
s fee, inspections, underwriting fee and processing fee.

•Prepaid Interest: Collected from date of funding to one month prior to the first payment date.

LENDER’S CHARGE FOR NEW
LOAN ASSUMPTION STATEMENT AND TRANSFER FEES

Fee charged by Lender varies from $250.00 to a percentage of the loan balance, plus
miscellaneous charges. Check with the Lender.

PRORATED TAX

The tax year runs from July 1 to June 30. Taxes are delinquent December 10 and April 10,
respectively. For prorated purposes, most new Lenders require that taxes be paid any time after
November 1 and February1. As a result, after those dates, taxes will be paid and prorated to
either January 1 or July 1 by crediting the Seller and debiting the Buyer from the date of close of
escrow to either December 31 or June 30, respectively. In general, property taxes are from 1.5 to
2.0% of the purchase price.

SUPPLEMENTAL TAX BILL

Unless a supplemental tax bill is issued prior to the close of escrow, any prorated monies and
payment of same, will be handled by and between the parties outside of escrow and the Escrow
Holder need not be further concerned.

HOMEOWNER’S ASSOCIATION FEES

Homeowner’s Association documents, provided during escrow, will outline transfer fees, move-in
fees and special assessment fees, if any.

PRORATED MAINTENANCE FEE

All dues must be current. At closing, the Seller is credited and the Buyer is debited from date of
close of escrow to either the first day of the following month or in the event dues are either
quarterly or annually, to the appropriate date.

FIRE INSURANCE

It is the Buyer’s responsibility to provide escrow with the name of their insurance agent. Check
with different agent’s for quotes. In the brush areas California Fair Plan may be the only
insurance company that will be able to provide you with insurance. California Fair Plan takes
several weeks to obtain so it is imperative that you determine whether or not the subject property