A closing, or settlement, is the meeting at which signing occurs that will lead to ownership being officially transferred from the seller to the buyer. The buyer and the seller, their attorneys, both real estate sales professionals, a representative of the lender and the closing agent typically attend the closing. The closing involves settling any open issues, balancing and verifying an often-complex closing statement and signing all documents necessary to complete the transaction.
At Butterworth Davidson PLLC, we have the skill and experience to insure successful residential and commercial real estate closings. Eric Butterworth has a comprehensive knowledge of the issues that arise in real estate transactions.
We take pride in making sure your real estate sale or refinance closes as scheduled and make every effort to assure a successful transaction.
Closing costs are one of the least-understood aspects of the home purchase procedure. Closing costs vary somewhat by community, but they include:
- Real estate excise tax (1.78% or 1.53% of sale price depending on location)
- Attorney fees
- Escrow fees
- Property taxes to cover the period to the closing date (prorated between buyer and seller)
- Interest from the closing date to one month before the first monthly payment
- Loan origination fees
- Recording fees
- Survey fees
- Mortgage insurance, if applicable
- Title insurance, both for the buyer and lender
- Loan discount points
- Reserves for future real estate taxes and insurance
- Homeowner’s insurance policy payment or receipt
- Appraisal fees
- Pest or other specific inspection fees
- Document preparation fees
- Other miscellaneous fees or charges (check with your closing agent)
The seller ordinarily pays the excise tax, buyer’s title insurance policy and one-half of the escrow/closing fee.
The buyer ordinarily pays the loan-related costs, recording fees and one-half of the escrow/closing fee.
In most cases, the allocation of costs between seller and buyer are subject to negotiation and the parties’ agreement. However, some loan types require certain fees to be paid by one party or the other.