SELLING COSTS

Closing Costs for Maryland, Washington, DC, Virginia Home Purchases

Closing costs in Maryland, Washington, DC, and Virginia include fees charged to the buyer and seller (primarily the buyer) to pay for the transfer of property.  Some items that are included in the closing include:


Legal Fees  

Fees charged by the title attorney or title company for holding the settlement meeting.  Legal fees also include the fee paid to the title company to review the deed and other documents filed in the county land records to make sure that title can be transferred free and clear.  If there are liens, judgments or other encumbrances recorded in the land records against the deed, the transfer cannot take place.  Your title attorney or title company will order a review of the title a week or two prior to the scheduled closing.  If the title is not free and clear, with the exception of notes filed by the seller's mortgage company, the title company will alert all of the parties and appropriate steps must be taken to pay all liens and encumbrances.  Often, in the case of tax liens, payment may be made from the seller's proceeds of the sale at closing.


Appraisal Fee

This fee may be paid to the mortgage company when the loan application is made or it will be paid at closing.


Lender Fees

Lenders charge fees associated with the closing such as documentation preparation, points (if any) charged in connection with the determination of the interest charged, and/or application fees. Not all lenders charge application fees, but they are still seen when using the services of small banks or mortgage brokers.


Recording Fees

These are fees or taxes paid to the county or state in which the property is located.  Real estate transfer fees and recordation fees are a source of revenue and will be a charge to the buyer.  Since the amount is significant, 1% - 2.5% of the purchase price, the buyer and seller may negotiate to have the seller pay part of these fees (Maryland).


Real Estate Taxes

Taxes are often pre-paid at settlement and escrow accounts, set up by the lender, continue to pay the tax payments until the property sells.

Other fees may be charged at settlement including survey, credit report and fees for any additional services that the title company has performed for the buyer or seller.

Your lender will prepare a detailed GOOD FAITH ESTIMATE when the loan application is taken.  Real estate agents will prepare an BUYER'S ESTIMATED CLOSING COSTS when preparing your Contract of Sale so you'll be prepared for settlement costs.  Closing costs in Maryland are approximately 4.5% of the purchase price and closing costs in Washington, DC and Virginia are approximately 3% of the purchase price.

 

Pocket Deals

 

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http://www.nytimes.com/2011/05/01/realestate/01cov.html