Each real estate Transaction incur Costs to Consumers
Being Consumer you need to be aware of this.
Real Estate Costs includes
Escrow Charges
Title Charges includes Owner Title Policy and Lender Title Policy
County Transfer Taxes
City Transfer Taxes
HOA Documentation Fees
HOA Transfer Fees
Inspection Costs
Lender Fees
Mortgage Broker Fees, if applicable
Escrow Companies in California handle all real estate transactions.
Escrow Company plays major role in all real estate transactions for transparence of all consumers interest. Consumers for real estate includes Buyers, Sellers, Real estate Brokers, Agents, Lenders , Inspection companies etc.
In each transaction Escrow Company charges for these transactions.
Depends on which county you are buying properties these charges will be applicable
Escrow charges include Escrow charges, Recording fees, Wire Transfer fees, Document preparation fees etc.
Title Insurance is very important to protect owners from any Title issues, Generally those are provided by Escrow Companies, they search against property ID or APN number for all records related to this property, These are available as Preliminary Title Report to consumers which can be reviewed with Escrow Agents or real estate agents. Any real estate property should be protected from Title issues to consumers, For Example: Sellers selling property to buyers should protect for any Title issues with property after buyers assumes property. Sellers will provide with Title Insurance available with Escrow Companies to buyers, hence buyers can always be protected for any issues prevailing before they assumes property.
Real estate transaction includes lenders may also need title policy from consumers for example: Buyers. Buyers buying property with loan from lenders always requires Title Policy to protect lenders interest. These title policy also available with Escrow company which be charged separately. If real estate transaction includes all Cash then Lenders Title Policy is NOT applicable.
County Transfer Fees and City Transfer Fees are mandatory for all transactions as Governmental Charges.
Please click on below link to understand charges based on County and city which you are purchasing property.
https://www.ortconline.com/web/clients/flyers/downloads/english/ClosingCostsEnglish.pdf
HOA Documentation and Transfer fees are applicable for all Properties which has Home Owners association. This fees is different from normal HOA charges you pay monthly.
Inspection fees includes Termite Inspection or Pest Inspection fees, Home Inspection fees, Roof inspection fees, Chimney Inspection fees, Structure inspection fees etc. Generally Pest, Roof and Home inspections are widely used until home inspection remarks for further inspections. These are paid by buyers or Sellers and its negotiable. All services from Third Party services.
Lender fees includes, Appraisal Fees, Credit Report fees, any origination fees, and Loan fees. If Mortgage Broker involved in this transaction his fees also will be added as a part of Lender fees