What sort of fees could you encounter as a buyer or seller of real estate? I recently sat down with Joey Maxwell of Salle Galloway to talk about costs that come from the closing attorney.
The first thing that Joey told us about was attorney’s fees, which can be on both sides of the transaction. On the seller’s side, these are often called a “document prep fee” and include things like preparing the deed. On the buyer’s side, they are often called “closing fees” or just “attorney’s fees,” and they are for the time spent during closing.
The next cost that we discussed was title insurance for both lenders and owners. What this effectively does is cover the owner’s costs should anyone make a legal claim against them for ownership of the property. The owner’s title insurance is effective immediately, while the lender’s insurance would only kick in if there were to be a foreclosure.
“Your contract will determine who pays for these fees as part of the transaction.”
Another charge that we talked about was the title abstract. This allows your closing attorney to use a third-party company to pull 40 years of ownership history for the property. This ensures that nobody else has a claim to the property.
The final charge we discussed was the recording fee. All purchases will need to be recorded at the county, and any mortgages involved will need to be recorded as well. This covers those costs.
There may be other, more minor fees that are incurred as the attorneys work behind the scenes to make sure the closing goes smoothly, but these are the most notable ones. As with anything, your contract will determine who pays for these fees as part of the transaction.
If you have any questions about closing costs and fees, don’t hesitate to reach out by phone call or email. My team and I would be delighted to help you.