Who Pays for What During Escrow in Torrance?

By Keith Kyle

Closing Costs – Who Generally Pays What In a Torrance CA Escrow

Keep in mind that the charts below are based on the standard allocation of costs in Torrance.  As with any detail of buying a home everything is negotiable including who pays what costs during the transaction.  In addition not all of these costs exist in every transaction and many are dependent on the lender, escrow company and the details of the offer.

Title Fees

Cost	Customarily Charged By/To:	Description
Owners Title Policy	Title:To Seller	Fee for the title policy. Calculated using the sales price.May be reduced if home was purchased or refinanced inthe last 5 years. Insures that the title is as agreedto at closing
LendersTitle Policy	Title:To Buyer	Title policy issued to lender to cover the amount of the loan.Based on the loan amount unless it is a negative amortizationloan.
Sub Escrow Fee	Title:to Buyer & Seller	Fee to administer the payoff of loans or property taxes of the seller and collection of funds from the new lender
Document Transfer Tax	County: to Seller at $1.10 per thousand of sales priceCity:  No transfer tax in Torrance	Fee charged on all properties that transfer title – based on sales price.
Record Release/Reconveyance	County:To Seller	Charge to record the release/reconveyance
Federal Express/Messanger Fees	Federal Express: to Buyer & Seller	Charge to deliver all time sensitive documents and monies
Title/Wire Fee	Banking Instituion: to Buyer & Seller	Charge to wire funds to escrow, seller, lenders, etc
Electronic Recording	County: to Buyer	Charge to electronically record the document
Record Grant Deed	County: To Buyer	Charge to record the grant deed
Record Trust Deed	County: To Buyer	Charge to record the trust deed.
Messenger	Messenger Service: To Buyer and Seller	Charge to special messenger documents during the escrow: Fee varies with distance
Lender’s Endorsement	Title: to Buyer	Charge for endorsements required by lender to cover “outside the normal” risk circumstances

Escrow Fees

Cost	Customarily Charged By/To:	Description
Escrow Fee	Escrow: Each pays own	Covers liability assumed as well as standard processing costs.
Demand Fee	Escrow: to Seller	Charge to request a statement & process involved in getting a payoff figure to escrow on the outstanding amount of the current loan. One demand fee per loan.
Process HOA Docs & Transfer Fee	Escrow: Seller	Fee for processing required to assign membership for HOA a& copying all governing documents
Document Fee	Escrow: to Buyer	Covers the cost of all processing required to meet new lender requirements
Loan Tie-In Fee	Escrow: to Buyer	Covers the cost of all processing required to meet new lender requirements
Federal Express	Federal Express: to Buyer	For document packages to out of County Lenders.

Lender Fees

Cost	Customarily Charged By/ To	Description
Origination Fee	Lender: to Buyer	Charge for lending money at 1% of the loan amount
Documentation Preparation	Lender: to Buyer	Paid to lender for preparation of final loan documents
Tax service	Tax Service: to Buyer	Fee charged to buyer to set up property taxes with the state
Wire	Banking institution	Charge for the wiring of funds to title for closing
Underwriting	Lender: to Buyer	Fee to direct lender for the process of approving
Tax impounds	Lender: to Buyer	Collected to create an impound reserved account for the lender to pay property taxes twice a year
Prepaid Insurance	Lender:to Buyer	Generally 1yr of hazard insurance collected for impound reserve account
Appraisal	Appraiser:to Buyer	Paid directly to appraiser for appraisal of property
Credit Report	Lender: to Buyer	Paid to credit bureau for report containing 3 credit scores
Processing	Lender: to Buyer	Paid to mortgage broker for processing loan package from application to closing

Disbursements

Cost	Customarily Charged By/ To	Description
HOA Transfer Fee	HOA Management: to Buyer	To transfer ownership and handle new accounting set up
HOA Dues	HOA Management: to Seller	Paid through month of closing
Fire Insurance	Insurance Agency: to Buyer	1 year prepaid premium for Homeowners insurance
Notary	Notary: to Buyer

Payoffs

Cost	Customarily Charged By/ To	Description
Recording Fee	Existing Lender: to Borrower	Charge for having reconveyance recorded.
Statement forwarding fee	Existing Lender: to Borrower	Charge for issuing a payoff statement

Credits and Prorations

Cost	Customarily Charged By/ To	Description
HOA Dues	Seller: to Buyer	Calculated from date of COA through month-end
County Property Taxes	Seller: to Buyer	Calculated from the date of payoff through end of period paid for.