Buying and selling a house in Western New York always has an additional expense in the form of closing costs. With this, the contract must state which party should shoulder which closing costs. Further inquiry about this matter should be discussed confidentially with a lawyer.
Here’s some basic information on closing costs whether you are a buyer or seller:
Basically, closing costs consist of the payment you make for the services of people who will be involved in the transaction, whether you are a buyer or a seller. These people are significant for a successful deal.
Closing costs for a seller
A seller will typically pay for local inspections and certificates, the title search updates, the updated survey, the transfer tax along with the filing fee for the transfer tax return, the recording fees for any additional legal papers for the purchaser to accept the title and attorney’s fee and disbursements.
The title search update is important, but to lessen cost a seller must possess the abstract of the title from the time of purchase in order to make the searcher’s job faster, thus, keeping the bill low. The cost of an update search is dependent on how extensive the searcher must look into public records.
Closing costs for a buyer
Aside from the house being purchased, a buyer will pay for the lender’s fees, recording fee for the deed, recording fee for the mortgage, mortgage recording tax and the title insurance. A discussion with an attorney regarding the title insurance is important for a buyer to do. If the buyer will borrow money from the bank, a title insurance policy that protects the bank’s lien position against the property must be purchased. Although the buyer has the option which policy to purchase to protect ownership in the property, the attorney must still be sought for counsel and decision be made after he or she reviews the title.