What are the Closing Costs when Buying or Selling a House

Written by Sandra DeVargas Posted On Sunday, 17 April 2016 14:37

State: Alabama
SOLD: 2
Old Article Id: 43875

Guest writer Attorney Michael Wild will be answering the question What are the closing costs when buying or selling a House?

If you are thinking about buying or selling your house in Western New York, you are already aware that closing costs are a major expense. In New York State, the contract should contain a provision about which party is responsible for which closing costs. Any questions about that contract provision, or any other contract terms should be discussed confidentially with your attorney.

What are closing costs?

When you purchase or sell real estate, there are more people involved in the transaction besides than the purchaser and seller. Each side is (or should be) represented by an attorney, each side is (or should be) working with a licensed real estate salesperson or licensed real estate broker, there is a title search company, a surveyor, a title insurance agent, usually a bank (or two), and the County Clerk. This is quite the cast of characters, and that list is not exhaustive. Each of these parties has a role to play in the transaction, and they must be compensated for their time and services.

If you are the Seller. What are your closing costs?

In Western New York, it is common to see the seller pay for the cost of any local inspections or certificates (this expense depends on where the property is located), the title search update, the updated survey, the transfer tax and the filing fee for the transfer tax return, the recording fees for any title “curative,” (a buzzword that lawyers use to refer to additional legal papers that make the purchaser willing to accept title to the property at closing), plus their own attorney’s fee and disbursements.

The title search update is a crucial step, and it should not be skipped over to economize closing costs. The cost to update the search is a function of how far back the searcher needs to look in the public records. In many cases here in Western New York, the seller has their abstract of title from the time of purchase, and it can help the searcher economize on their time (and keep that bill lower).

If you are the Buyer. What are your closing costs?

You mean I have to pay for more than just the house? . In this area, the buyer pays the lender’s fees (that’s a different article for a different day), the recording fee for your deed, the recording fee for your mortgage (if you have a mortgage), the mortgage recording tax (if you have a mortgage) and the title insurance. Title insurance is a discussion you need to have with your attorney. If you are borrowing money from a bank, you will purchase a title insurance policy that protects the bank’s lien position against your property. You have the option to purchase your title insurance policy that protects your ownership in the property, but the expense is a cost-benefit decision you should have with counsel after he or she has the opportunity to review title.

Can someone explain this to me?

If this is the first time, you’ve encountered the normal closing costs in a Western New York Real Estate transaction.Attorney Michael Wild will be glad to explain the closing costs and any other aspect of your real estate transaction. His office is located at 17 Beresford Ct., Williamsville, NY 14221. His office telephone number is (716) 565-2000 ext. 213. This is attorney advertising.