Things are very different from when I started in this business in 1992. Back then there were what were considered "customary" seller closings costs. I remember what items those were, but since they don't apply today it's not really much of a need to talk about them. In our GAR contracts today closings costs have all shifted to the buyer with two exceptions.
One is any item needed to cure title. Perhaps a corrective deed or Quit Claim is needed before a seller can sell. And if a seller cannot attend the closing they also are required to pay for documents to be delivered to and from them for the closing. Any other closing contribution a seller makes to a buyer is in the form of a contract negotiation. The negotiated amount on on the front page in the blank you see in the screen shot above. The items below are highlighted that I mentioned in this paragraph.
As you can see pro-rations are also mentioned under closing costs. It truly depends on the date of closing as to how that works. Unpaid taxes are a credit to buyer from seller based on the past year if tax bills are not out. If tax bills are out buyer and seller both pay and their share and closing attorney pays bill. If seller has already paid then buyer credits back their share to seller.
From time to time we have a buyer who MUST have seller contributions to be able to close. But my opinion is that if you don't need it, don't ask for it. The seller will always have a bottom dollar in mind. They just add the closing costs you ask for to that number. So if you are short of funds to close then it's a good idea. If not you are perhaps paying interest on closing costs needlessly.
If you'd like more an explanation about what closing costs are I'd be happy to suggest a great lender for you talk with about them. Just give me a call. 706-485-9668
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Tammy Lankford, Broker/Owner
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