The buyer and seller will sign the settlement sheet at the closing, detailing
all of the charges that each party has incurred during the sale of the house. It
is crucial to go over the sheet for accuracy and to make sure that you
understand everything on it before you complete the transaction.
When a contract is negotiated, each side agrees how to divide the loan fees (or
points), as well as the other closing charges, such as state or local taxes or
escrow fees. Your Realtor can go over the settlement sheet and help you compare
it with your purchase agreement. The seller's charges usually include the
brokerage fee, the mortgage payoff, and any charges involved in clearing the
title, as well as pro-rated property taxes, payments for termite treatment and
escrow for repairs that could not be completed by closing. The buyer's costs
include charges for the loan and title searches, insurance and any other legal
fees. A good closing officer will go over the settlement sheet line by line,
explaining each item and correcting any misplaced charges.