What you will pay at closing time.

 

The fees associated with the sale/purchase of your home.

by: George Castro, P.A.

When it comes to selling your home in South Florida, both the buyers and seller will encounter fees associated with the sale. A real estate transaction involves clauses and stipulations that obligate all parties to the transaction to fulfill financial obligations. But who pays what and how much will it cost?

 First thing you must do is to research the purchase contract and contact your real estate attorney. Your realtor or the title company that is facilitating the transaction may help with breaking down the closing fees. The most popular standard contract used in South Florida is the ‘As-Is Residential Contract for Sale and Purchase.’ Most of the charges associated with the sale are broken down for the buyer and seller within the contract. For a buyer the following fees are associated but not limited to: municipal lien search, association application fees, recording fees, appraisal fees, lenders title policy/endorsement, survey to include elevation certificate, (buyer) inspection fees,(buyer) attorney fees, property related insurance, and lender fees (loan expenses.)  

Based on what is agreed by all parties, the buyer may also be responsible for the owner’s policy and insurance charges. Some fees are due prior to closing so be sure to you know what is due. If you are financing, be sure to ask your mortgage broker about origination fees that are expected to be seen on the closing disclosure. A typical estimate on closing costs for an FHA loan is (4-6%) of the purchase price (not to include your down payment.) If the buyer is paying cash, expect (1-2%) of the purchase price as closing costs fees. 

But what if you are the seller in the transaction? With regards to the 'as-is contract' for a seller the following fees are associated but not limited to: deed stamp taxes, title search charges, HOA estoppel fees, fees required in order to cure title, municipal lien search (if applicable), and lastly commission realtor fees. Certain fees can be delegated based on which party picks the title company. If you are purchasing within a condo association or similar, be sure that any special assessment fees due are clearly marked to the responsible party at closing.

Be sure to know what you are paying, review the purchase contract, and request the closing statement as soon as possible. Closing documents should be disbursed well in advanced to all parties ahead of the closing date. Due to the Consumer Finance Protection Bureau (CFPB), TILA RESPA Integrated Disclosure (TRID), has created changes to the 'as-is contract.'  Remember ‘time is of the essence’ as indicated in the contract and the buyer are required to receive, by the lender, the closing disclosure three (3) days prior to the closing date.

Disclaimer: This article is not to be construed as legal advice. Always be sure to consult with a real estate Attorney.