When it comes to selling a house, there are a lot of expenses involved. From real estate agent fees to closing costs, the costs can add up quickly. One of the expenses that sellers may be unsure about is the contract fee.

So, who pays for the contract when selling a house? The short answer is that it depends. Let`s take a closer look at what the contract fee is and who typically pays for it.

What is the contract fee?

The contract fee is the cost of drafting the legal contract between the buyer and seller. This contract outlines the terms and conditions of the sale, including the purchase price, closing date, and any contingencies. The contract fee is usually paid to the attorney or title company that drafts the document.

Who pays for the contract fee?

In general, the party who hires the attorney or title company to draft the contract is responsible for paying the fee. In most cases, this will be the seller.

However, it`s worth noting that the contract fee is negotiable. If the buyer and seller agree to split the cost, they can do so. Alternatively, the buyer may choose to hire their own attorney to review the contract, in which case they would be responsible for paying their attorney`s fees.

It`s important to note that the contract fee is just one of many expenses involved in selling a house. Sellers should also be prepared to pay for real estate agent commissions, closing costs, and other fees associated with the sale.

How much does the contract fee cost?

The cost of the contract fee can vary depending on several factors, such as the complexity of the sale and the location of the property. In general, the fee can range from a few hundred dollars to over a thousand dollars.

To get an accurate estimate of the cost, sellers should consult with their attorney or title company. They can provide a detailed breakdown of the fees involved in the sale, including the contract fee.

In conclusion, when selling a house, the contract fee is just one of many expenses to consider. While the seller is typically responsible for paying the fee, it`s negotiable, and the buyer may choose to hire their own attorney to review the contract. By understanding the costs involved in selling a house, sellers can better prepare for the financial impact of the sale.