CLOSING COSTS

“CLOSING FEES” is a term that refers to the various payments, taxes, and fees-other than the purchase price of the property –that the buyer must pay through the course of buying a home. So that you can budget effectively, I have included a list of the most typical expenses below.

REAL ESTATE FEES: The amount of the real estate fees that you will have to pay is dependent on the agency relationship you choose (see Agency Relationships for more details).

LEGAL FEES: While legal fees will vary depending on the lawyer, buyers can expect to pay somewhere between $800- $1600 to close their real estate transaction.

HOME INSPECTIONS: Once a suitable home is found, buyers are urged to purchase a home inspection ($350-$40om a certified inspector). A termite inspection is an additional $225

SURVEY: It is strongly advised that each property have a survey. Frequently, the seller has one that can be transferred to the new owner, but a new survey costs approximately $900 - $1200. If a survey is unavailable, the buyer may wish to purchase title insurance, which is much less expensive. To learn more about title insurance, visit TitlePlus.

TITLE INSURANCE: Title insurance will protect property owners and mortgages against loss through adverse claims or hidden interests in their properties. This unique product was developed as a result of inadequate deed registry systems; the reliance on privately held mortgages, which were not always registered; and the somewhat haphazard manner in which lands were opened for settlement.

MORTGAGE SET-UP: There are often extra costs associated with setting up your mortgage, such as an appraisal fee ($150-$200), or insurance. Ask your lender for details.

 

LAND TRANSFER TAX: The amount of Land Transfer Tax you will pay is dependent on the purchase price of your house.

 

The rates are:

Up to $250,000

1%

$250,000 - $400,000

1.5%

Over $400,000

2%

Land Transfer Calculation

 

A SECOND LAND TRANSFER TAX

  1. 0.5% of 1% of the value of the consideration for the conveyance, up to and including $55,000.00;
  2. 1% of the value of the consideration which exceeds $55,000.00, up to and including $400,000.00;
  3. 1.5% of the value of the consideration which exceeds $400,000.00, up to and including $40 million;
  4. 1 % of the value of the consideration which exceeds $40 million; and
  5. notwithstanding (3) and (4), 2 percent of the value of the consideration for the conveyance which exceeds $400,000.00, if the conveyance is a conveyance of land that contains at least one and not more than two single family residences.


“Closing costs are the one thing most people don’t factor into the equation and end up with a surprise at closing”