Recurring vs. Non-recurring Closing Costs
For a buyer, closing costs are everything outside of the purchase price that a buyer pays to complete a real estate transaction.
For a seller, closing costs are all the fees, except liens or encumbrances, that are deducted from the purchase price.
Some examples of closing costs include documentary transfer tax; city / county transfer or property taxes; inspections; loan fees such as points and prepaid interest.
Costs or expenses in an escrow are classified as either recurring or non-recurring.
For a seller, closing costs are all the fees, except liens or encumbrances, that are deducted from the purchase price.
Some examples of closing costs include documentary transfer tax; city / county transfer or property taxes; inspections; loan fees such as points and prepaid interest.
Costs or expenses in an escrow are classified as either recurring or non-recurring.
Recurring Closing Costs
Costs which the party pays at closing but will continue to pay after the escrow closes as the normal cost of maintaining the property.
- Fire Insurance Premium
- Homeowner’s Association Dues
- Real Property Taxes
- Interest on the New Loan
Non-Recurring Closing Costs (NRCC)
Costs which are charged ONE TIME ONLY as an expense of closing the transaction.
Title Company Expenses such as:
- Title Insurance Premiums
- Recording Fees
- Endorsements to Title Policies
- Sub-Escrow Fee which may be due Title Company
- Reconveyance Fees
- Documentary Transfer Tax
- Escrow Fees
- Notary Fees
- Messenger Fees
- Fees Associated With Making an Existing Loan Payoff
- Transfer or Document Fees to a Homeowner’s Association
- Appraisal
- Credit Report
- Loan Origination
- Loan Processing
- Document Fees
- Tax Service Contract
- Real Estate Broker Commissions
- Fees for Property Disclosures or City Reports
- Transaction Coordinator Fee
- Home Warranty Premium
