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We just closed on house at the beginning of the month. We went through First American title for escrow and title.
This was for $149,000 cash.
The closing cost total was $2,336.00
This included supplemental title insurance and prorated property tax etc.
Most of the fees, while customary, are not required.
The only "required" fees on a cash deal are the recording fees ($26), real property transfer tax, and any HOA transfer fees. I've bought property from friends where we didn't go through escrow. They signed a quitclaim deed we found on the internet, recorded it, and I wrote them a check. No escrow, no title insurance.
If you buy a car, you still pay a fee to issue a new title (analogous to recording fees) and sales tax.
Escrow gives you the convenience and peace of mind that an un-affiliated third party is handling the transaction and making sure payment is cleared properly. You could do this with a car.
Title insurance protects you from title discrepancies. If you sign and drive a car and happen to get a forged title, no recourse for you.
Bottom line, you pay for services you receive.
Quote:
Originally Posted by Caltovegas
What's the closing cost if you buy a $80,000 car (cash)? Makes no sense does it? A car can travel anywhere but a house in most cases will be where it's said to be..
Since the wife and I are getting closer to the sale of our Utah residence, we need to know what the buyer's share of Nevada closing costs are for a cash deal. We will be taking a title policy to cover ourselves and it will be from a national underwriter so factor that into the equation. Prorations I can figure but the other costs are sketchy. Figure 80k contract price.
TIA
Closing costs can vary depending on the title company and the rates can very depending on the policy. Also if a seller states you have to use their title company like banks do then the bank will pay for the title company.
Hoa's depending on the community will ask for additional months to help keep the reserves healthy. Due to all the foreclosures and short sales and bank owned properties owners didn't pay their month hoa's which put hoa's reserves in jeopardy. Some hoa's went into bankruptcy or gone all together, this is why there are additional hoa fees paid at closing, it use to be one month additional hoa now it can be two or three.
Inspection you should always have an inspection if an inspector finds something wrong with the property you can either ask for the issue to be remedied or cancel the escrow. Regarding bank owned properties most banks usually sell the property as is so they won't fix the issue.
Transfer tax is generally paid by the seller, banks however don't and won't and they don't have to. You can try to negotiate that with a regular seller usually the transfer tax is 1 to 1.5% of the purchase price depending on the property.
If your purchasing with cash your closing costs can run 1 to 2% of the purchase price depending on hoa's and title fee's and what part of the month you close. Those fees could go up it's seems every time we turn around fee's are going up.
If you finance closing costs can run from 3% to 3.5% of the purchase price these fees could go up in the future as well.
This is important to know as a buyer to protect your earnest money and to be able to cancel a contract there are things you need to do to protect yourself.
1. Home inspection if something is found wrong and you don't want to deal with it you can cancel or try to get the seller to pay for it, like I said above banks usually won't.
2. Title insurance when the title company does a title search and if they find additional liens on the property or issues with the property than you can cancel or ask the seller to clear them up. But if the seller wont' than you can cancel and get your emd money back. Also if title insurance missed a lien or something that was there all along instead of you having to pay the title insurance will pay it for you that is why it's called title insurance.
3.If your purchasing in a common community with an hoa which is most of Vegas and the surrounding areas,the seller will order a hoa resale pkg and the hoa resale pkg will have how much is in it's reserves, if there is any litigation or problems then you can cancel as well and get your emd back.
4. You have 5 days from the time you have made the offer to cancel if you should change your mind for any reason. Once you go past those 5 days then you have the other aforementioned process's that I mentioned above.
These safe guards are put into place to protect you and by skipping them you are asking for trouble.
Closing costs can vary depending on the title company and the rates can very depending on the policy. Also if a seller states you have to use their title company like banks do then the bank will pay for the title company.
Hoa's depending on the community will ask for additional months to help keep the reserves healthy. Due to all the foreclosures and short sales and bank owned properties owners didn't pay their month hoa's which put hoa's reserves in jeopardy. Some hoa's went into bankruptcy or gone all together, this is why there are additional hoa fees paid at closing, it use to be one month additional hoa now it can be two or three.
Inspection you should always have an inspection if an inspector finds something wrong with the property you can either ask for the issue to be remedied or cancel the escrow. Regarding bank owned properties most banks usually sell the property as is so they won't fix the issue.
Transfer tax is generally paid by the seller, banks however don't and won't and they don't have to. You can try to negotiate that with a regular seller usually the transfer tax is 1 to 1.5% of the purchase price depending on the property.
If your purchasing with cash your closing costs can run 1 to 2% of the purchase price depending on hoa's and title fee's and what part of the month you close. Those fees could go up it's seems every time we turn around fee's are going up.
If you finance closing costs can run from 3% to 3.5% of the purchase price these fees could go up in the future as well.
This is important to know as a buyer to protect your earnest money and to be able to cancel a contract there are things you need to do to protect yourself.
1. Home inspection if something is found wrong and you don't want to deal with it you can cancel or try to get the seller to pay for it, like I said above banks usually won't.
2. Title insurance when the title company does a title search and if they find additional liens on the property or issues with the property than you can cancel or ask the seller to clear them up. But if the seller wont' than you can cancel and get your emd money back. Also if title insurance missed a lien or something that was there all along instead of you having to pay the title insurance will pay it for you that is why it's called title insurance.
3.If your purchasing in a common community with an hoa which is most of Vegas and the surrounding areas,the seller will order a hoa resale pkg and the hoa resale pkg will have how much is in it's reserves, if there is any litigation or problems then you can cancel as well and get your emd back.
4. You have 5 days from the time you have made the offer to cancel if you should change your mind for any reason. Once you go past those 5 days then you have the other aforementioned process's that I mentioned above.
These safe guards are put into place to protect you and by skipping them you are asking for trouble.
Great post.
Title Insurance:
1) Can the title policy be shopped around ?
2) Are rates set by the state (as in NY) or is there competition ?
3) If the seller (whoever it is) insists that I use their insurer and I refuse (since I will ONLY use a national underwriter or their agent), am I then responsible for the policy costs (fee policy only).
HOA's:
1) I plan on paying one year's worth of HOA's at closing.
2) Is there a transfer fee ? (I guess it depends on the HOA)
Inspection:
Yup. It's a must have. Probably $250-$350 range.
Transfer tax:
1) Amount depending on the property ? Explain please. This will be a condominium unit purchase.
2) Why aren't banks required to pay this ?
Great post.
Title Insurance:
1) Can the title policy be shopped around ? AFAIK, your choice of escrow company will dictate the title policy you receive. I've never cared, so I don't know if one escrow company has the ability to sell for multiple title insurance companies. The kicker is if you're buying a foreclosure, they require you use their escrow/title company. I suppose you could attempt to demand to use someone different, but it is standard that it is their choice.
2) Are rates set by the state (as in NY) or is there competition ? Title policy rates vary by company, but they are generally close.
3) If the seller (whoever it is) insists that I use their insurer and I refuse (since I will ONLY use a national underwriter or their agent), am I then responsible for the policy costs (fee policy only). The seller may choose to dictate the escrow company (such as in a foreclosure). Not sure you can refuse and continue the transaction without their agreement.
HOA's:
1) I plan on paying one year's worth of HOA's at closing.
2) Is there a transfer fee ? (I guess it depends on the HOA) Yup, there is and fee varies by HOA.
Inspection:
Yup. It's a must have. Probably $250-$350 range.
Transfer tax:
1) Amount depending on the property ? Explain please. This will be a condominium unit purchase. $5.10 per thousand dollars of purchase price.
2) Why aren't banks required to pay this ? Customarily the seller does pay it.
4. You have 5 days from the time you have made the offer to cancel if you should change your mind for any reason. Once you go past those 5 days then you have the other aforementioned process's that I mentioned above.
These safe guards are put into place to protect you and by skipping them you are asking for trouble.
isn't the due diligence is 7 to 10 days?
if you back out during the due diligence period, you get your earnest deposit back. and if it's after the DD period you get the money taken away right? any additional penalties?
I might make an offer in a coupe days and it's xmas and the holidays time, possible to ask for a longer DD period? actually what I want to know is it will be hard to schedule inspectors, title company, agent's time with family etc, they are off like on xmas and new year's day, and also the day before right? it's a difficult time to buy a house!
also in NV they don't use attorney in a real estate transaction at all? so your agent handles everything ?
if you back out during the due diligence period, you get your earnest deposit back. and if it's after the DD period you get the money taken away right? any additional penalties?
I might make an offer in a coupe days and it's xmas and the holidays time, possible to ask for a longer DD period? actually what I want to know is it will be hard to schedule inspectors, title company, agent's time with family etc, they are off like on xmas and new year's day, and also the day before right? it's a difficult time to buy a house!
also in NV they don't use attorney in a real estate transaction at all? so your agent handles everything ?
Due diligence is whatever the purchase agreement says it is. I have seen anything from 5 days to a month. 7 or 10 days is the norm.
And note that receipt of the HOA documents is also in play. Basically a buyer can cancel anytime in the first 15 days of a purchase agreement if he has not had the HOA documents for 5 calendar days. This clause is widely misunderstood by RE Agents who for whatever reason believe the seller has to give you the HOA docs. They don't. And if you let the agreement run past 15 days you have no recourse.
It is actually reasonably rare to lose the EMD. The seller can refuse to release it and tie it up in escrow...and there really is nothing a buyer can do except go to court. A good reason to make sure the EMD is in small claims court range or you really intend to buy the house.
And note that many escrow companies will allow a second escrow even though the first is not closed if the only issue is EMD return. So the seller can sell the house even though another escrow is not closed.
The final resort of a cornered buyer is to make the financing fail. Many banks are cooperative. The let out on financing is pretty deep.
In hard dispute it is often the outcome that it is split to avoid the risk and cost of a court battle.
This is the stuff you pay your agent to know. Though many don't.
Not sure where 15 days comes from. NRS 116.4109 section 2 is explicit that a contract can be cancelled without penalty until 5 days after receipt of the resale package. If you get the package late, I don't see how 10, 20, 50 days would even matter. You can cancel until you've had the package for 5 calendar days.
NRS 116.4109 section 1 details that the unit owner must at the unit owner's expense expense, provide the resale package to the buyer. That sounds like the seller needs to give the buyer the HOA docs to me.
Quote:
Originally Posted by lvoc
And note that receipt of the HOA documents is also in play. Basically a buyer can cancel anytime in the first 15 days of a purchase agreement if he has not had the HOA documents for 5 calendar days. This clause is widely misunderstood by RE Agents who for whatever reason believe the seller has to give you the HOA docs. They don't. And if you let the agreement run past 15 days you have no recourse.
Not sure where 15 days comes from. NRS 116.4109 section 2 is explicit that a contract can be cancelled without penalty until 5 days after receipt of the resale package. If you get the package late, I don't see how 10, 20, 50 days would even matter. You can cancel until you've had the package for 5 calendar days.
NRS 116.4109 section 1 details that the unit owner must at the unit owner's expense expense, provide the resale package to the buyer. That sounds like the seller needs to give the buyer the HOA docs to me.
Clause in RPA...
COMMON-INTEREST COMMUNITIES: If the Property is subject to a Common Interest Community ("CIC"), Seller or his authorized agent shall request the CIC documents and certificate listed in NRS 116.4109 (collectively, the "resale package") within two (2) business days of Acceptance and provide the same to Buyer within one (1) business day of Seller's receipt thereof. Buyer may cancel this Agreement without penalty until midnight of the fifth (5th) calendar day following the date of receipt of the resale package. If Buyer does not receive the resale package within fifteen (15) calendar days of Acceptance, this Agreement may be cancelled in full by Buyer without penalty. If Buyer elects to cancel this Agreement pursuant to this section, he must deliver, via hand delivery or prepaid U.S. mail, a written notice of cancellation to Seller or his authorized agent identified in the Confirmation of Representation at the end of this Agreement. Upon such written cancellation, Buyer shall promptly receive a refund of the EMD. The parties agree to execute any documents requested by ESCROW HOLDER to facilitate the refund. If written cancellation is not received within the specified time period, the resale package will be deemed approved. Seller shall pay all outstanding CIC fines or penalties at COE.
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