Blog Archives


Buying Your Home
Settlement Costs and Helpful Information


C. Adjustments To Costs Shared By Buyer and Seller

At settlement it is usually necessary to make an adjustment between buyer and seller for property taxes and other expenses. The adjustments between buyer and seller are shown in Sections J and K of the HUD‑1 Settlement Statement.  In the example given above, the taxes, which are payable annually, had not yet been paid when the settlement occurs on July 1. The borrower will have to pay a whole year’s taxes on the following December 1.  However, the seller lived in the house for the first six months of the year.  Thus, one ­half of the year’s taxes are to be paid by the seller.  Accordingly, lines 211 and 511 on the HUD‑1 Settlement Statement would read as follows: Read the rest of this entry

Buyer’s Closing Costs vs. Seller’s Closing Costs

If you’ve read Jennifer’s blogs, you know the definition of closings costs.  Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.  Since we have many transients in Florida, I get asked about this a lot.  Here’s what you can expect: Read the rest of this entry