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Closing costs.

tango

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Newbie question. I searched but didn't find.
I read in the checklist for buyers that closing costs are negotiated between buyer and seller as to who pays, but, is there a predominant consensus as to who usually pays the closing costs? Is it buyer or seller, or is it usually split a certain way?
 

dwsupt

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ebay purchases

I bought on ebay and paid all 3 times. It figured in a small way since the total price paid was under $1500 each, title delivered.
 

Bill4728

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Most of the time the buyer pays the closing costs.

But sometimes when the seller really want to get rid of the TS, they may offer to pay some or all of the costs.
 

Talent312

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If not otherwise agreed, typically, the Sellers' only duty is to deliver a proper deed, duly signed, free+clear of liens, 'cept MF's+taxes for the current year...

Thus, if the Seller pays anything, its for -- deed prep, state documentary stamp tax, costs for satisfaction of liens, and if a partial-year use, a prorata share of MF's+taxes.

The Buyer pays all other expenses, including costs relating to financing documents, title insurance, recording the deed, HOA transfer fee, and any other costs related to perfecting title.

Because the Seller's part in a clear-title T/S transfer is so limited, its not unusual for the Buyer to pick up the entire bundle (and customarily required).
 
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tango

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Thank-you.
Who usually picks the closing company, buyer or seller?
 

DeniseM

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The resale companies all have a specific closing company that they do business with and have a preferential relationship with, so you should iron it out before you bid on ebay or during negotiations on other websites.
 

FlyerBobcat

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Thus, if the Seller pays anything, its for -- deed prep, state documentary stamp tax, costs for satisfaction of liens, and if a partial-year use, a prorata share of MF's+taxes.

Also, as a newbie this makes me scratch my head and wonder: How does payment of MF's+taxes work if you buy midyear from a seller? I assume negotiations on that matter should depend on who uses the current year's timeshare week... or am I looking at this all wrong? So much to learn....:confused:
 

TheTimeTraveler

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Under most cases, the buyer pays the seller for the year in which he begins actual use of the time share.
 

tango

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And what if the seller is an individual and not a resale company. Is it a matter of negotiation which closing company is used?
 

Talent312

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And what if the seller is an individual and not a resale company. Is it a matter of negotiation which closing company is used?

If its stated up-front by the Seller ("Closing shall be done by 'y' company"), your bid or offer is subject to that condition. But if not, your offer should include the clause, "Funds shall be held in escrow and closing conducted by an agency selected by the Buyer."

Think about this: When one finances a real estate purchase, its the bank or finance company writing the mortgage who says who they will authorize to act as a closing agent . IOW, its the guy providing the money who calls the shots.

But settling terms such as this is one reason why, IMHO, its better for the parties to sign a written contract than simply "wing it."
 
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theo

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And what if the seller is an individual and not a resale company. Is it a matter of negotiation which closing company is used?

In my opinion, whoever is doing the paying for closing services should also have the right to do the selecting of the closing company. That said, as a buyer I also don't want any "I'll just handle it all myself" efforts from any seller, even if for free. Having to correct deed mistakes after recording makes "free" no longer any "bargain" at all. Objective third party escrow of funds and review of deed details is worth every penny (to me, anyhow).

In a transaction between individuals, more often than not (desperate seller situations perhaps being very rare exceptions to this observation), the buyer should select and pay a closing company of their own choice.
 
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Dave H

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If its stated up-front by the Seller ("Closing shall be done by 'y' company"), your bid or offer is subject to that condition. But if not, your offer should include the clause, "Funds shall be held in escrow and closing conducted by an agency selected by the Buyer."

Think about this: When one finances a real estate purchase, its the bank or finance company writing the mortgage who says who they will authorize to act as a closing agent . IOW, its the guy providing the money who calls the shots.

But settling terms such as this is one reason why, IMHO, its better for the parties to sign a written contract than simply "wing it."

Talent:

Not true sir, the person that picks the closing company in a real estate transaction is the party paying the title insurance costs, at lease in most of
Florida.

What would stop the lender from steering business to an affilliate that is triple or quadruple the normal costs.

Respa states that he who pays, picks....

Dave
 

Talent312

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Talent: ... [T]he person that picks the closing company in a real estate transaction is the party paying the title insurance costs, at lease in most of Florida.

What would stop the lender from steering business to an affilliate that is triple or quadruple the normal costs...

Yeah, and who pays the title insurance almost every instance? ...The Buyer.
It is true that mortgage-originators are (in most cases) prohibited from steering borrowers to a captive or related closing company. Some do simply tell the Buyer to choose their own attorney or title company.

However, I have dealt with several who provide a list of "approved" closers who they trust to handle their funds and tell the Buyer to select one. Often, the Buyer is clueless as to which to choose and asks the loan officer to recommend one -- improper perhaps, but it happens.
 

Dave H

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Yeah, and who pays the title insurance almost every instance? ...The Buyer.
It is true that mortgage-originators are (in most cases) prohibited from steering borrowers to a captive or related closing company. Some do simply tell the Buyer to choose their own attorney or title company.

However, I have dealt with several who provide a list of "approved" closers who they trust to handle their funds and tell the Buyer to select one. Often, the Buyer is clueless as to which to choose and asks the loan officer to recommend one -- improper perhaps, but it happens.


Talent, I can only speak to Florida, but in South Florida on residential buyer pays title insurance and picks closing company, in Central and North Florida seller pays per the FAR/BAR and picks title.

It is true that in a refinance, the owner is paying, and that lenders try hard to drive business to "their" closing company, I have always seen them give to the person paying....

Dave
 
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