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Hi, I'm an italian lawyer and I'm studying the differences between Italy and US in the purchase process and the related closing costs.
I see that tha main cost in a real estate closing is the title insurance: is it a negotiable cost or is it fixed by law (it probably depends from the state you're buying)
I know that there are there other closing costs (title search, settlement fee, attoney) how much do they normally weigh upon a closing ?
I'm interested in closing costs only, so not those related to the loan (points, loan origination fee etc.) or the agent.
Thanks
The only costs you have in the US not related to the loan are transfer taxes (not applicable everywhere) and cost of recording the deed.
Everything else, including title insurance, is optional unless the mortgage lender requires it, so I'd call those closing costs relating to the mortgage. The sellers traditional purchase owners title insurance for the buyer but it's not required and not all buyers purchase it if the sellers choose not to.
Hi, I'm an italian lawyer and I'm studying the differences between Italy and US in the purchase process and the related closing costs.
I see that tha main cost in a real estate closing is the title insurance: is it a negotiable cost or is it fixed by law (it probably depends from the state you're buying)
I know that there are there other closing costs (title search, settlement fee, attoney) how much do they normally weigh upon a closing ?
I'm interested in closing costs only, so not those related to the loan (points, loan origination fee etc.) or the agent.
Thanks
There is significant variance between states as to how closings are handled.
Definitive and unmodified statements of fact often are wrong, depending on where one is living.
Where I live, in North Carolina, the Buyer will usually pay for the title insurance.
We use attorneys for most closings, rather than title companies.
Title insurance is sold by the attorney, and may be negotiable.
Attorney fees typically include some nickel-dime stuff like recording and any necessary courier fees, and run into the $500-$600 range. Typically paid by Buyer.
Seller will typically pay transfer tax stamps, $1.00/$500 of sales price.
All closing costs can be negotiated, although, of course, it is a "net sum" consideration.
Title insurance is regulated by the state in Texas. The cost is not negotiable. The seller traditionally pays the owner's policy for the buyer, and the buyer traditionally pays the lender's coverage.
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Originally Posted by MikeJaquish
There is significant variance between states as to how closings are handled.
Definitive and unmodified statements of fact often are wrong, depending on where one is living.
Where I live, in North Carolina, the Buyer will usually pay for the title insurance.
We use attorneys for most closings, rather than title companies.
Title insurance is sold by the attorney, and may be negotiable.
Attorney fees typically include some nickel-dime stuff like recording and any necessary courier fees, and run into the $500-$600 range. Typically paid by Buyer.
Seller will typically pay transfer tax stamps, $1.00/$500 of sales price.
All closing costs can be negotiated, although, of course, it is a "net sum" consideration.
Attorneys sell title insurance? Wow! Do they act as the insuring agent or do they just act as a "salesperson" for a title insurance company?
In my county, they collect .0015 of the sales price as a transfer tax $100,000 sales price = $150 transfer tax
You're correct that closing costs vary from state to state. In some states, the title company does all the title research, and they make their money from insurance premiums. Very generally speaking, this premium is usually paid by the seller. If you send me a direct message I can tell you the premiums in Texas.
In other states, mostly in the southeast U.S., attorneys are hired to do the title search, and they charge for their time. Then there is a smaller premium to be paid for title insurance. Both costs are negotiable in most cases.
It is typical to have a survey of the property performed, although if the seller has a fairly recent (within a few years) survey, that can usually be used so long as no significant changes have occurred. If a new survey is required, it is usually paid at closing.
Then you are going to have a transfer tax in some, but not all, states. The exact amount is based on the value of the property, and the tax rate differs from state to state. You can find the rate for particular states online.
Then you are going to have some minor fees for recording costs, delivery costs, preparation of the deed, escrow services, tax certificates, homeowner association transfer fees etc. It is usually subject to negotiation as to who pays these, but if the parties have relatively equal bargaining power, they are often split between buyer and seller.
It is difficult to give an accurate estimate of these costs without narrowing your question down to a particular state.
Oregon is not an attorney state so the basic transactions are handled by agents and attorneys get involved for the really complicated or large transactions (like developments).
The buyers pay the lender's title insurance policy and our buyers and sellers split escrow fees 50/50. Seller's pay for a title insurance policy on behalf of the buyer. Escrow/title fees run around $900 (so $450 or so for each party) and then title insurance depends on the price and age of the property.
Other than property taxes we don't have an real estate transfer taxes out here. So on a $250,000 home (around our average) the typical seller would pay about $1,400 in closing costs, not including any property taxes they may owe, but that were not payable yet.
As I understand it in SC, they serve as an agent for the title insurance co. As such they typically serve limited representation roles for the buyer/seller/lender/title insurance. I think som, possibly many, of the bigger attorneys here own the title insurance company for which they are selling the policy.
The attorneys fees are about $450 and there is normally a $75 fex/ex fee.
As I understand it in SC, they serve as an agent for the title insurance co. As such they typically serve limited representation roles for the buyer/seller/lender/title insurance. I think som, possibly many, of the bigger attorneys here own the title insurance company for which they are selling the policy.
If the attorneys own the company, the company is almost always just an agent of the actual insurer.
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