We’ve put together a helpful chart to see what most escrow and closing cost terms mean and a little about each of them. Find out who pays
for each fee (customarily) and what the fee is for. See also who pays for what during escrow.
Get a better understanding for everything in escrow from lender terms to title terms to inspections.
Closing Cost Definitions
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 in the last 5 years. Insures that the title is as agreed to at closing |
| Lenders Title 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 amortization loan. |
| 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, City: to Seller | 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 | Federal Express: to Buyer & Seller | Charge to deliver all time sensitive documents and monies |
| Title/Wire Fee | Banking Instituion: to 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: to Buyer & Seller | Covers liability assumed as well as standard processing costs. |
| Damand 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: to Buyer & 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 requireents |
| 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 |
| Insurance impounds | Lender: to Buyer | 1yr + 2 months 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 o closing |
| Fire Insurance | Insurance Agency: to Buyer | 1 year prepaid premium for Homeowners insurance |
| Notary | Notary: to Buyer | Charge to seller for signing of grant deed or certificatin |
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. |
