Who Pays for What?

Seller is responsible for…

  • Owner’s title insurance policy
  • Escrow fee (one-half except with VA which is paid in full)
  • Excise tax on sale price of home (1.789)
  • Pay off existing mortgage(s)
  • Penalty for paying mortgage in full (if valid)
  • Real estate broker professional fee
  • Doc preparation fees
  • Current utility balances
  • Pay off leased fixtures
  • Pro-rated property taxes
  • Pro-rated HOA dues
  • Homeowner’s association fees
  • Miscellaneous HOA fees
  • Resale Certificate

 Buyer is responsible for…

  • Lender’s title insurance policy
  • Escrow fees (one-half — Seller pays both halves if VA loan)
  • 1st-year fire insurance
  • 1st-year flood insurance (if applicable) or
  • Flood certificate (seller paid if VA)
  • Hazard insurance (1st year’s premium)
  • Property inspection (including pest inspection)
  • Property Taxes registration (seller paid if VA)
  • Pro-rated taxes for the year
  • Document preparation fee
  • Recording fees
  • Home owner’s dues from time of purchase on
  • Lender Fees: Private mortgage insurance, Loan origination fee, Appraisal, Credit report, Pre-paid interest).
  • Sewer Capacity Charge (for homes built after 1991)***

***The sewage treatment capacity charge is a charge billed to property owners with new sanitary sewer connections made to a structure or addition to a structure, since February 1, 1990. Therefore, if applicable, the buyer is responsible for payment of Metro’s (King County Department of Metropolitan Services) sewage treatment capacity charges per RCW 35.58.570. The sewer treatment capacity charge is a 15-year billing period but also transferable to the next buyer.

“At any time during the 15-year duration of the charge, you may pay the remaining balance in one lump sum at a discount. If you include the payoff amount in your mortgage, it might provide a tax advantage. However, prepaid future charges are non-refundable and a remaining balance of the 15-year charge can be passed along to the next owner.”

For more information visit  www.kingcounty.gov/capacitycharge.