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STANDARD REAL ESTATE PRACTICES OF HETCH HETCHY ASSOCIATION OF REALTORS


Each real estate area has some practices which are standard or normal for their association. Although you can negotiate anything you want in a contract it is handy to know what the norm is for a given area. I will expand on this for our association, but again, none of these norms are mandated.

1. Escrow Fees are split 50/50.
2. Title Insurance is split 50/50.
3. Home Owners Association Transfer and Document Fees split 50/50.
4. Property Taxes are pro-rated. (You only pay for the time you own the property)
5. County Transfer Tax, $1.10 per Thousand, Seller Pays.
6. All Inspections paid by Buyer. (Pest, Home, Septic, Roof, Well, Etc.)
7. Seller usually pays for section one pest work, buyer pays for section two.
8. Transfer Fee For Water and Sewer - Buyer Pays.
9. Natural Hazard Zone Disclosure Report - Seller Pays.
10. Smoke Detector, Water Heater, Other mandatory minimum government retrofit standards - Seller Pays.

As a general rule if something benefits the buyer, then the buyer pays. (Such as most inspections). If something benefits the property (repair, mandatory minimum government requirements, etc.) then the seller pays. To understand and know what to expect can lead to a smoother and less stressful contract negotiations.

Two items which any buyer or seller might wish to consider are a Home Insurance Policy and a Risk Management Policy:
THE HOME INSURANCE POLICY can cover the new owner for unexpected and necessary repair during the first year of ownership. Peoples life styles tend to put different stresses on things and it is not uncommon for things to break that first year.