In a Taos real estate purchase agreement, there is an item with two charts.  One chart lists loan related costs and fees, while the other lists closing costs.  Each chart has three columns, Buyer, Seller and Not Required.  Usually check marks are placed next to each item under who has agreed to pay it, Buyer or Seller.  If it’s an item that’s not required for that deal, the appropriate box should be checked to make this clear.

The loan related items chart will have all the fees and escrows associated with the loan and servicing the loan.  Taos real estate custom is for the Buyer to be filled in as the one paying these costs, as it is the Buyer that needs the loan.  This is the norm for most areas of the country.  It is, however, negotiable.  If a Buyer needs help  to get qualified or come up with enough cash, and the lender will permit it, the Seller could agree to pay some of these costs.

The closing costs chart will have check marks under all three columns.  There are some items in the Taos real estate market customarily paid by the Buyer, some by the Seller, and some that are not required.  Some of these items, as well as who customarily pays for them are:

• title company closing fee - 50/50 Buyer and Seller;
• deed preparation - Seller;
• documents recording for Seller - Seller;
• documents recording for Buyer - Buyer;
• title insurance binder or committment - Buyer;
• title insurance basic policy premium - Seller;
• title insurance lender policy and endorsements - Buyer; and
• survey or improvement location report - Seller.

Keep in mind that this is just Taos real estate market customary cost splits.  Every item is negotiable.  When you begin the process of a Taos real estate purchase, discuss all items with your broker.

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