George Clements ~ Greenville, SC Real Estate
Paragraph 7 of the Contract For Sale deals with closing costs. The paragraph looks something like this:
7. CLOSING COSTS: All expenses necessary for the consummation of this sale, unless otherwise agreed
herein, will be paid as follows: (a) Seller will pay for deed preparation, deed recording fees, costs associated
with mortgage payoff and satisfaction and any cost not allowed to be charged to Purchaser by the Lender; (b)
Purchaser will pay discount points, all non-recurring closing costs, prepaid items, Private Mortgage Insurance,
FHA-MIP or VA Funding Fee, if applicable. Other terms: ______________________
This paragraph spells out which closing costs the seller is paying and which closing costs the purchaser is paying. If nothing is written in the "Other terms:" section then the purchaser will be required to pay all of their own closing costs. These include but are not limited to loan fees, pre-paid fees required by the loan, reserve deposits like taxes and insurance, title charges (attorney fee, title search, document preparation), and inspection fees.
When it comes to the seller paying for the purchaser's closing costs it is all about the seller's bottom line. To a seller, $100,000 for a property and $103,000 with the seller paying $3,000 of the purchaser's closing costs is the same thing. Either way, the seller gets the same net figure. If you are wanting the seller to pay your closing costs there are good clauses to use that make sure that everything is covered. George can fill this in at "Other terms:" when helping write up the offer for you.