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We currently credited up to 3% closing costs on a 335,000 purchase. The buyer's closing costs fell short of the total closing cost credit and are attempting to buy down the rate to increase closing costs.
Our lawyer is currently disputing this as being a closing cost. Can my lawyer actually do that. In the end the difference probably isn't all that much regardless but I was curious if buying down the rate was considered a closing cost to be used for seller credit in all instances.
I certainly don't want to incite the buyer but nitpicking over this issue, don't want to get unncessarily charged extra funds either however. What is standard practice with this situation??
Any cost that is owed can be a closing cost - home inspection, appraisal, termite inspection, lender fees (including points), title fees, closing attorney fees, escrow account reserves, pre-paid interest, homeowners insurance, etc. If as a seller I agree to pay 3% towards closing costs then I expect to pay 3%, anything less is a gift I'd be fortunate to not have to pay but I wouldn't expect it. If there was a list of fees that the 3% would cover then I could see your attorney having a case, but if it was just a blanket "3% towards buyers closing costs" then I don't think you have a leg to stand on.
Any cost that is owed can be a closing cost - home inspection, appraisal, termite inspection, lender fees (including points), title fees, closing attorney fees, escrow account reserves, pre-paid interest, homeowners insurance, etc. If as a seller I agree to pay 3% towards closing costs then I expect to pay 3%, anything less is a gift I'd be fortunate to not have to pay but I wouldn't expect it. If there was a list of fees that the 3% would cover then I could see your attorney having a case, but if it was just a blanket "3% towards buyers closing costs" then I don't think you have a leg to stand on.
I certainly consider the 3% gone. Was just curious if it is common place for lawyers to fight this. I didn't ask my lawyer to do so.
I certainly consider the 3% gone. Was just curious if it is common place for lawyers to fight this. I didn't ask my lawyer to do so.
It is common to buy down the rate to "use up" seller paid costs.
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