WHAT COSTS ARE RELATED TO THE SALE
Mortgage Pay Off: Before the closing, you will sign a release for the Title Company or Attorney to get the amount that will be owed on the day of closing. This will allow the Closing Company to prepare the closing documents and they will issue a check out of your proceeds at the closing to pay off your outstanding mortgage.
Lines of credit or Equity lines: As with the mortgage pay off, you will have to authorize the closing company to get this information. If there are any amounts owed, they also will be paid off and any lines of credit closed.
Prepayment Penalty: Often, sellers think all that is owed is the amount showing on their last statement. This is not always true. A prepayment penalty could be in your mortgage agreement. You may also owe interest, depending on the day of the month that you close.
Unpaid Taxes/Liens: Title work is important to see whether there are any liens or unpaid taxes on the title, prior to closing. If there are, these items will be paid the day of closing. The closing company cuts checks out of your proceeds and pays them on your behalf.
Special Assessments: Special assessments are things like water, sewer, road or other local government improvements that were assessed to the property. In most cases they must be paid off, in others, they can be assumed by the buyer. If they are to be paid off, again the closing company will pay these out of your proceeds.
Commissions: The seller is responsible for paying the commissions to both the listing agent and the buyer's agent at a rate agreed upon at the time the seller reached an agreement with a professional real estate agent to represent him/her in the selling of this particular property.