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The
seller's most important closing cost will be paying
off the balance of any mortgages or loans in which the
property has been used as collateral.
Before
the day of closing, the title company will contact the
seller's lender to verify the amount needed to close out
the loan. Then, along with any other fees, all loans will
be paid for at the closing before the seller receives
any proceeds from the sale.
Seller closing costs can include:
- Mortgage debt
- Second mortgage, Home
Equity Loan, Line of Credit balance
- Title Insurance
- State Transfer Tax (3/4
of 1% of the sale price)
- County Revenue Stamps
(1.10/$1000 of the sale price)
- Recording fee
- Real Estate Brokerage
fee
- Property tax pro-ration
- VA Closing fee
- Home Warranty
Title
insurance
This is an insurance policy that protects the lender or
the buyer against loss arising from disputes over
ownership of a property.
Property tax pro-ration
Property taxes are typically paid at the end
of the year for which they were assessed. On the
day of closing, taxes for the number of days the seller
has owned the home will be charge to the seller. The buyer
will be charged for the remaining days of the year.
VA closing fee
This will never become a fee unless you have
agreed to sell to a buyer who is purchasing your home
through a VA loan. The VA requires that the seller
pay a fee of $250 on behalf of the buyer at the time of
closing.
Home
warranty
A home warranty is often offered by sellers as protection
against unforeseen failures in the home. A home
warranty will cost the seller between $395 and $450 and
will provide repairs for specific parts of the home for
a period of one year. A home warranty is an option.
It is not required.
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