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Below are examples of expenses typically associated with real estate closings:
PURCHASER
For the purchaser, an approximate estimate of the closing expenses you will
incur can be gotten by calculating about four to five percent of the purchase
price. These expenses include the cots of obtaining your mortgage, your Title
Insurance search and policy, your Homeowner's Insurance Policy, Mortgage Tax
and escrow deposits for real estate taxes. See the following checklist as an
example of closing costs for a $500,000.00 home.
| ESTIMATE FOR CLOSING COSTS-PURCHASER |
|
| Purchase price |
$500,000 |
| Mortgage amount |
$450,000 |
| Premium for fee (owner) title insurance for benefit of purchaser |
$2,518 |
| Simultaneous premium for mortgage title insurance for benefit of lender |
$578 |
| New survey (if lucky, bank will accept old survey with inspection update |
$120 - 550 |
| Municipal departmental searches |
$400 |
| Miscellaneous riders and endorsements to policy (generally requested
by lender) |
$75 |
| Recording of mortgage and deed |
$400 |
| Fee for filing accompanying Equalization and Assessment Report (see revised
form, which must be signed by grantor and grantee) |
$25 |
| Mortgage tax @ 1.75% of mortgage amount (less $25 deduction for one-or
two-family dwelling) for NYC property (Lender pays additional 1/4%). In
Nassau and Suffolk, the mortgage tax is reduced to 0.75% of the mortagage
amount (less $25 deduction for one-or two-family dwelling) |
$4,315 |
| Real estate tax escrow picked up by lender at closing |
$400 |
| [If loan is above 80% of purchase price, bank will also escrow for PMI
mortgage insurance.] |
|
| Fuel adjustment for oil remaining in tank |
$320 |
| Premium for one-year homeowner's insurance policy naming bank as loss
payee (Bank may also insist on escrow for future homeowner's insurance) |
$750 |
| Prepaid interest on new mortgage loan |
$1,170 |
| Bank's attorney's fee |
$600 - 900 |
| Mortgage application and processing fees including house appraisal and
credit checks |
$745 - 905 |
| Utility security deposit |
$0 - 250 |
| Counsel fees |
varies |
| TOTAL ESTIMATED CLOSING COSTS |
varies |
CLOSING EXPENSES - SELLER
A Seller, in addition to paying off all mortgages and liens which encumber
the property being sold, is responsible for the payment of New York State Real
Property Transfer Tax and the Broker's Commission if the services of a broker
have been retained. If the property being sold is located within the City of
New York or the County of Nassau, an additional transfer tax of one percent
(1%) of the purchase price will be imposed upon the Seller.
Do
I Need a Lawyer?
An article by the New York State Bar Association.
Closing
Costs
Learn about closing costs associated with the purchase or sale of real estate.
Real
Estate Transaction Disputes
Our office handles disputes in connection with purchase/sale agreements, escrows,
fraud and real estate broker liability (including constructive fraud).
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