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OK I am curious... what in the world does dirty underwear, sleeping bags and boxes in the garage have to do with a final inspection?
Because the underwear, sleeping bags and boxes demonstrated evidence that there was habitation taking place in a house that had not been signed off on by the building inspector. No different than if an inspector showed up to an office building to find the mailroom abuzz with mail being sorted and the trashcans full at each cubicle demonstrating that there was work being performed there and occupancy prior to final inspection.
No keys until money has changed hands. Buyers remorse is real, no matter how great the deal or property, and I want that to hit after I have my check in hand; not prior to closing.
Because the underwear, sleeping bags and boxes demonstrated evidence that there was habitation taking place in a house that had not been signed off on by the building inspector. No different than if an inspector showed up to an office building to find the mailroom abuzz with mail being sorted and the trashcans full at each cubicle demonstrating that there was work being performed there and occupancy prior to final inspection.
No keys until money has changed hands. Buyers remorse is real, no matter how great the deal or property, and I want that to hit after I have my check in hand; not prior to closing.
That would be a localism and is also reasonably dumb. What is the protocol? Give the inspector $100 and he does not notice? Love it.
Thanks for your replies! Your opinions got my husband to see the light. So we're not closing on Friday, but it gets even better! I finally got the HUD statement today and it's so full of junk. Our net is 10k less than was estimated.
There are junk fees like processing, , and the broker fee is over 5k. I thought they got paid a commission anyway?? Even if they charged 1 point it's still high. The buyer's agent is the mortgage broker too, so she really could relax on the fees. She's about to make just as much as I am on the house. I forgot to mention the "water bill escrow" and "burglar alarm escrow" . My realtor hadn't even bothered to question these before sending this to me and seemed miffed that I'd dare ask.
At this point I could lower the price 30k and help some first time buyers instead of giving my equity to these flim-flammers.
I'm a little confused. You didn't know the Realtor's fees in advance? You signed the listing agreement, no? Or are you talking about the mortgage broker? You don't pay those fees, the buyer does, unless, you accepted contract saying you would pay the closing fees for the buyer. Generally, the closing fees for the buyer are 'built in', meaning they are added to the cost of the home, the contract written for that price and then a clause saying the seller will pay for buyers closing costs up to such and such amount. In a case like that, there also would be a clause saying that the realtor fees are paid on the contract amount less the built in closing costs.
Water bill escrow and burglar alarm escrow? Those are things that having nothing to do with 'closing' costs. Wow.
Who gave you an estimated net amount? Did you figure it out or did your Realtor do that for you?
I agree with Palmcoasting - all the closing costs and who pays for them should have been addressed in the original offer and calculated for you so you'd know what your approximate net proceeds would be before you accepted the offer. It is typical for the closing agent to hold back some funds to pay the final water bill but you would get a check back for any excess that was held. Maybe they did the same thing for your alarm system bill? If it's transferring with the property, they want to make sure you pay for any cost outstanding until it transfers into the buyer's name. The loan costs are BUYERS fees not your fees, unless you agreed to pay their costs. I hope your agent explained everything to you when the offer was presented. THat's a crucial part of deciding how to respond to an offer.
I'm a little confused. You didn't know the Realtor's fees in advance? You signed the listing agreement, no? Or are you talking about the mortgage broker? You don't pay those fees, the buyer does, unless, you accepted contract saying you would pay the closing fees for the buyer. Generally, the closing fees for the buyer are 'built in', meaning they are added to the cost of the home, the contract written for that price and then a clause saying the seller will pay for buyers closing costs up to such and such amount. In a case like that, there also would be a clause saying that the realtor fees are paid on the contract amount less the built in closing costs.
Water bill escrow and burglar alarm escrow? Those are things that having nothing to do with 'closing' costs. Wow.
Who gave you an estimated net amount? Did you figure it out or did your Realtor do that for you?
Yes, I'm just talking about the fact that the buyer's agent is also their mortgage broker, so she is making two commissions plus adding a junk broker fee to make the amount up to our ceiling we agreed to pay for closing. Palmcoasting, you remember I posted and you and a few others told me the 5% we agreed to was way too much? That's where this is coming from. Our agent told us this was "standard" and she's seen them as much as 6 or 7% an d we believed it stupidly until the board said it should be around 3. It was too late to change it then, but sure enough when I do the math the actual cost are 3%, but her junk fees push it up to 5%. My agent pretty much lied just to get the deal done.
And yes this "burglar alarm escrow" is $2500! You could pay the bill for almost 3 years with that! We called Brinks to make sure it wasn't on their end and they said we're not under contract anymore so there's no reason for any escrow to pay them. The city also bills the person for the water bill, not the house, so any outstanding bill is sent to us an once the person brings their closing papers they are not responsible for bills prior to that date.
Quote:
Originally Posted by WendyK
I agree with Palmcoasting - all the closing costs and who pays for them should have been addressed in the original offer and calculated for you so you'd know what your approximate net proceeds would be before you accepted the offer. It is typical for the closing agent to hold back some funds to pay the final water bill but you would get a check back for any excess that was held. Maybe they did the same thing for your alarm system bill? If it's transferring with the property, they want to make sure you pay for any cost outstanding until it transfers into the buyer's name. The loan costs are BUYERS fees not your fees, unless you agreed to pay their costs. I hope your agent explained everything to you when the offer was presented. THat's a crucial part of deciding how to respond to an offer.
Yes, you are right but closing being done means title is filed. And you are suppose to hand the keys to the lawyer or the real estate agent to hold until that is done. Liz
Here in Alaska you can close on the house but until the title is recorded closing can be haulted, so keys don't transfer until the tiitle has recorded
Yes, you are right but closing being done means title is filed. And you are suppose to hand the keys to the lawyer or the real estate agent to hold until that is done. Liz
According to KELABU the closing is not complete the buyers are trying to rush it, so therefore they can't get in until the documents are signed and filed.
Man-o-man sounds like you got hosed by your agent, I'm selling my place in about 8 months so I'm learning what to look for by your experience.
Trickier than that Tressa. And very much local. Basically the contract is complete when the money and the deed are delivered to escrow. It is customary here not to deliver keys until the titile is recorded. But I don't think there is any law that requires it. In fact people do transfer property all the time without recording for all sorts of reasons. (Evading taxes is sometimes one)
I have been involved in deals where the buyer took possession long before the deal closed...in one case almost five months early. It was a reasonable accomodation involving the tail end of a bankruptcy. In fact I was loaning the seller 1000 a month throughout the period to maintain the payments on the house. You do what you got to do to close a deal.
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