These include advance deposits held in escrow for real estate property taxes and insurance. The lender collects a portion of these every month and then pays the insurance and taxes when they are due. Sometimes closing costs can amount to a sizable sum, but remember some of the items are tax deductible. The loan origination fee prepaid interest and property tax adjustments may be such items. Signing On The Dotted Line With the seller, the attorney explains the settlement sheets and gets the home seller's signature on them and the deed.
Seller pays appropriate closing costs.
If the seller's taxes or insurance have been escrowed, the seller will receive any money accumulated in the account for bills not yet due. Additionally the seller will be reimbursed for any money paid in advance and not used such as property taxes. The seller will receive these refunds at or after settlement, depending on the area. Taxes and home owner's dues or condominium fees will be prorated on a daily basis. Seller, buyer and brokers are supplied a copy of settlement sheets for their records.