Who Pays For What In The Tahoe Area?

A major question buyers and sellers both have in the purchase offer negotiation process is “Who pays for what?”.   The time to determine “Who will pay for what” in the escrow process will be in the offer-negotiation process, so knowing who typically pays for what in the Tahoe area will help you create a more attractive offer from the start and increase your chances of success in getting the Tahoe home, or condo you want to buy.

The following summary will give you a general idea as to “who pays for what in the Tahoe area”.  While the final answers will vary based upon your actual negotiation, you’ll have a good idea of what is typical for the greater North Lake Tahoe – Truckee area.

All fees charged are governed by terms of the final purchase sales contract agreement and other written escrow instructions (Note: on some FHA, VA or other government-backed loans, the buyer will pay some fees that governmental regulations will not allow you to pay).

Sellers Generally Pay:

• Real estate commission
• Title insurance policy premiums are typically split 50% Buyer and 50% Seller, but are negotiable
• Escrow fees are also typically split 50% Buyer and 50% Seller in the Tahoe market, but are also negotiable
• Document transfer tax ($1.10 per $1,000 of sales price)
• Notary fees
• Property tax pro-ration (to date of acquisition)
• Special delivery/courier fees, if required
• Document preparation fees
• Document recording charges
• Home owner’s association statement fee and prorate dues
• Home owner’s association transfer fee – Negotiable between Buyer and Seller – see contract
• Home warranty – Negotiable between Buyer and Seller – see contract
• Work/repairs required  – Homes are sold “as is” in their present condition unless the Buyer and Seller agree to other terms. – see contract
• Matters of record against the property or seller (loans, tax liens, judgments, etc.) and fees required to clear them (statement fees, reconveyance/trustee fees and prepayment penalties)
• Bonds and assessments (according to contract)
• Lake Tahoe Basin Sellers need a Current Sewer Certificate to close escrow.
• Tahoe Municipalities may require a sewer clearance certificate to close escrow.  Check with local municipality.
• Sellers may need to provide the Buyer with a Tahoe Regional Planning Association (TRPA) Best Management Practices (BMP) Certificate of Completion.  This is a negotiable item between the Buyer and Seller – see contract.
• Sellers will need to provide the Buyer with a Natural Hazards Disclosure report/statement.  The cost of this report is typically a Seller cost (according to contract terms)
• Other pro-rations (vacation rental deposits, website, insurance etc.) if applicable –  see contract

Buyers Generally Pay:

• Title insurance policy premiums are typically split 50% Buyer and 50% Seller, but are negotiable
• Title insurance policy premiums  for the lender is typically paid for by the Buyer
• Escrow fees are typically split 50% Buyer and 50% Seller in the Tahoe market, but is also negotiable
• Notary fees
• Property tax pro-ration (from acquisition date)
• Special delivery/courier fees, if required
• Document preparation fees
• Document recording charges
• Home owner’s association statement fee and prorate dues
• Home owner’s association transfer fee – Negotiable between Buyer and Seller – see contract
• Home warranty – Negotiable between Buyer and Seller – see contract
• City costs
• Inspection fees (according to contract)
• Matters of record against the buyer including tax liens, judgments and fees required to clear them
• Fire insurance premium for the first year
• Assumption/change of records fees if the buyer is taking over an existing loan
• Lender’s new loan charges
• Interest on new loan from date of funding to 30 days prior to the first payment
• Other pro-rations (vacation rental deposits, website, insurance etc.) if applicable –  see contract