No matter whether you live in Arizona or some other state and looking to sell your home, you’ll likely be responsible for a variety of fees and expenses that you will have to pay at the time of closing.
Prior to the close of escrow, the title company will provide a preliminary HUD1 for your review. The HUD1 will itemize the financial details of the transaction for both the Buyer and Seller. Common items for the Seller to be responsible for are:
- Real Estate Brokerage Fees
- HOA Dues Payable
- HOA Transfer Fees
- Home Inspection, if done as part of the listing agreement
- Home Warranty
- Owners Title Policy Premium
- Closing Fees
- Escrow Fees
- Property Tax Prorations
- Interest Prorations
- Septic Inspections, if required
- Notary fees
A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have paid a bill for services that will be used by the buyers after they move in or vice versa. Proration is a way for the Buyers to reimburse you for bills you have paid in advance. For example, Property taxes and HOA assessments that are paid at the beginning of the month in advance. But assume you sold the home on the 6th of the month. You would be entitled to reimbursement from the Buyer for the period from the close of escrow to the last day of the month. The amount paid in advance would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.
