Have you ever wondered what all of the closing expenses on the HUD are and why you are paying for them? Well, here's a breakdown of the most typical expenses:
SELLER EXPENSES:Real Estate Commission: Customarily paid at closing by the Seller and is generally negotiated prior to signing a Sales Contract and evidenced by a Commission Agreement.Broker Transaction/Adminstration Fee: LRG does not charge this fee, however, many other real estate brokerages do charge a fee.Abstracting or Title Update FeeTitle ExaminationOwner's Title Insurance Premium: Paid by Seller in most counties other than Miami-Dade and Broward.Tax and Lien SearchRecording Fees: Miami-Dade, Broward, and Palm Beach.Documentary Stamps on Deed: The rate is $.70 per $100 of purchase price ($.60 per $100 in Miami-Dade County).Homeowner's or Condo Estoppel FeeMortgage PayoffHomeowner's or Condo AssessmentReal Estate Taxes: Usually prorated from January 1st of the year of the sale.BUYER EXPENSES:Lender & Mortgage Broker Fees: There are many various fees collected by the lender and/or mortgage broker (Document Preparation, Underwriting, Credit Report, Flood Determination, Courier, Assignment, Processing, etc.) ALWAYS ask your lender or mortgage broker for a Good Faith Estimate of Fees before you apply for your loan. This free 1-2 page form details the estimated charges that you will pay at closing.Pre-Paid Interest:First Year of Property InsuranceFirst Year of Flood InsurancePre-Paid EscrowsClosing or Settlement FeeTitle Examination FeeOwner's Title Insurance PremiumLender's Title Insurance PremiumTitle Insurance EndorsementsShipping and Handling FeeWire Transfer FeeRecording Fees: Miami-Dade, Broward, and Palm Beach.Documentary Stamps on MortgageIntangible Tax on Promissory NoteAppraisal: Usually ordered by the lender on your behalf and collected upfront with your application fee.Survey:The above list represents typical and common exepnses found on a closing statement (HUD) however this may not be a complete list and every party to a transaction is encouraged to read their contract and/or seek the assistance of a real estate attorney who is able to more fully explain your obligations in a real estate transaction. |
Closing Expenses 101 
