Inspections – Buyers are responsible for all third party inspections, such as home inspections, termite inspections, etc.
Homeowner’s Insurance. Buyers will be responsible for any fees associated with the purchase of homeowner’s insurance. Like mortgage lenders, it very much pays to shop around to know which companies offer the most coverage per dollar. Know what you are paying for, and how much you should be paying.
Here is a brief list of fees a buyer can expect working through a title company such as RP Title:
Settlement (Closing) Fees – These include drafting, administrative work, and any other necessary tasks performed prior, during, and after closing. Settlement fees will also include all services performed by the title company. Remember, if you see a title company charge any additional fees, you have a right to question them and get a full explanation of what they are for.
Title Insurance and Title Endorsements – When a buyer gets a mortgage associated with the purchase of a home, he/she is responsible for purchasing Lender’s Title Insurance to protect the lender during the transaction. This is separate from the title insurance buyers receive (typically from sellers) for their protection. Fortunately, whenever a seller purchases title insurance (Owner’s Policy of Title Insurance), the Lender’s Policy of Title Insurance that the buyer must purchase is deeply discounted, and relatively inexpensive.
Taxes – The buyer is typically responsible for purchasing the documentary stamps on the mortgage, as well as the intangible tax on the mortgage. These fees are charged by the county where the property is located. The documentary tax on the mortgage is $0.35 per $100 borrowed, and the intangible tax is $0.002 per $100 borrowed. For example, the documentary stamps on a $100,000 mortgage will be $350, and the intangible tax will be $200.
Prorations – Tax and homeowners association dues are usually prorated at closing, which means that both the buyer and the seller pay their respective shares of the expenses based on ownership of the property during that year. For example, if the closing occurs in the middle of the year, the seller will be responsible for the other half. These calculations are done at closing and reflected on the closing settlement.