Closing costs include several main expenses. Here’s a look at them in detail.

Agent Commissions

Unless you’re selling the home on your own, you likely hired a real estate agent. They will want their cut once the house is sold. This cut comes in the form of commissions. In the past, a 6% commission was split between the listing agent and the buyer’s agent.

However, that has changed. New rules now allow buyers to decide how much to pay their agents and will sign written contracts. When they make offers, buyers can ask sellers to pay the buyer’s agent commission at closing.

Title Insurance

Prior to a sale, a title search is done to verify ownership of the property. While this search is typically thorough, title insurance protects the lender or home buyer if unexpected ownership claims arise later.

There are two types of title insurance. One policy covers the lender, and it is usually required for the mortgage loan to close. There is also the owner’s policy, which covers the home buyer, but this is optional.

Taxes and Fees

There will also be filing and recording fees as well as transfer taxes. These are all determined by local or state jurisdiction. Sellers will often be required to pay the property or deed transfer tax. Taxes and fees are generally not negotiable, but a buyer may be willing to take on more of the fees in a hot market. Property taxes and any homeowner association fees will likely be split with the buyer.

Seller Concessions

In a buyer’s market, the seller may need to pay some of the closing costs. This is referred to as a seller concession. A common concession is covering the cost of necessary repairs found during the home inspection. However, seller concessions may be limited by the type of home loan the buyer is using.

Other Considerations 

Keep in mind that your profits will likely need to be used to pay off your current mortgage. If you have a home equity loan or line of credit, that will need to be paid off as well. In addition, any liens or judgments against the property will have to be paid before it can be sold.

 Seek Legal Help

Closing on a home can be exciting, whether you are the seller or buyer. However, there are many documents and costs involved, so keep that in mind.

There’s a lot that goes into the closing process. Get the help you need from Fort Lauderdale closing lawyer Edward J. Jennings, P.A. We’ll help you stay on track so everything goes smoothly. Schedule a consultation today by calling (954) 764-4330 or filling out the online form.

Source:

nerdwallet.com/article/mortgages/closing-costs-home-seller

There are situations in which a home purchase can fall through, preventing a smooth closure. Here are some common problems to look for if you’re buying a home.

Damage by Termites

You should always opt for a pest inspection before buying a home. A home is a huge expense and you certainly don’t want buyer’s remorse after finding about months after closing that your home has termite damage. If the pest inspection shows termite damage, the seller should pay for the damages. If the seller refuses or the damage is too major, you can walk away.

Defects Shown in Home Inspection

The home may look good in person, but there could still be defects beneath the surface. That’s why you should never forego a pest inspection. When you decide to purchase a home, make sure you include a contingency that allows you to back out if an inspection shows defects. Otherwise, you could lose your deposit.

 Lien or Judgment on Property

The property must have a clear title before it can be sold. If there are issues such as liens or judgments, then someone else can take the home away from you. Get title insurance during the escrow process so you can see if the IRS, state, or other third party has a claim to your property.

Financing Falls Through

Buyers should not make offers without preapproval. But even if you are preapproved, things can still fall through. Maybe interest rates increased, you lost your job, or your credit score dropped dramatically. Make sure you get a reason from the lender.

Cold Feet

Cold feet doesn’t just happen before a wedding. It can happen any time you’re not feeling 100% OK about a purchase.  This can happen when buying a home. A home is probably the most expensive thing you will ever buy, so it’s possible that you might change your mind. The seller could also decide they no longer want to accept your offer. They may have found a better offer or they may even decide to not sell their home after all. In these situations, the party with the cold feet may be forced to pay damages to the other party due to the delays caused by the cold feet.

Seek Legal Help

The closing process does not always go as smoothly as expected. Issues can crop up and while sometimes they can be the buyers’ fault, in many cases, the seller or another party is the one causing the delays.

Dealing with these issues can be frustrating. Contact Fort Lauderdale closing lawyer Edward J. Jennings, P.A. for help with closing issues. Don’t give up. We can resolve your issues and get you in your new home quickly. Call (954) 764-4330 or fill out the online form to schedule a consultation.