I OFTEN HAVE PEOPLE CALL ME WHEN THEY ARE GOING TO PURCHASE A PROPERTY, AND ASK ME TO GIVE THEM AN ESTIMATE OF WHAT THEIR CLOSING COSTS ARE GOING TO BE.
I HAVE HEARD OF REALTORS THAT CALCULATE IT USING A PERCENTAGE OF THE SALES/PURCHASE PRICE, AS DO SOME BANKERS.
HOWEVER, THE EXACT AMOUNT IS OFTEN VERY EASY TO CALCULATE. BELOW IS AN EXAMPLE THAT CAN BE USED FOR YOUR PURCHASE
A BUYER’S TYPICAL COSTS AND FEES CAN BE CALCULATED AS FOLLOWS:
- ATTORNEY FEE
- SETTLEMENT OR CLOSING FEE – THE FEE TO PERFORM YOUR CLOSING BY THE ATTORNEY OR TITLE COMPANY (TYPICALLY $295.00 IN MIAMI DADE COUNTY)
- SURVEY – IF A SINGLE FAMILY RESIDENCE (USUALLY BETWEEN $295.00 AND $300.00)
- COURIER FEE (USUALLY BETWEEN $25.00 AND $30.00)
- WIRE FEE (USUALLY BETWEEN $15.00 TO $25.00)
- HOMEOWNERS INSURANCE PREMIUM
- HOMEOWNERS FLOOD INSURANCE PREMIUM
- TITLE INSURANCE PREMIUM (THIS IS BASED ON THE PURCHASE PRICE AND IS A STANDARD FEE REGULATED BY THE DEPARTMENT OF INSURANCE)
- LOAN FEES (CAN NOT EXCEED THE GOOD FAITH ESTIMATE PROVIDED BY YOUR BANKER BY MORE THAN 10% OR THE BANK MUST REFUND THE DIFFERENCE TO YOU)
- IF FINANCING, YOU MUST BE INTANGIBLE TAX ON THE MORTGAGE LOAN AMOUNT AT .20 CENTS FOR EVERY $100.00 BORROWED
- IF FINANCING, YOU MUST ALSO PAY DOCUMENTARY STAMPS TAXES ON THE MORTGAGE AT .35 CENTS FOR EVERY $100.00 BORROWED
- IF FINANCING, YOU WILL ALSO PAY FOR THE RECORDING OF THE MORTGAGE AT $8.00 FOR THE FIRST PAGE AND $8.50 FOR EVERY PAGE THEREAFTER.
PROPERTY TAXES ARE PRORATED FROM JANUARY 1ST OF THE YEAR TO THE DATE OF CLOSING AND WILL APPEAR AS A REDUCTION IN THE AMOUNT THE BUYER IS REQUIRED TO BRING TO CLOSING.
ESCROWS WILL ALSO BE ADDED BY YOUR LENDER IS YOU HAVE ELECTED TO INCLUDE THE INSURANCE AND TAXES INSIDE YOUR MONTHLY MORTGAGE PAYMENT. IF SO, THE BANK WILL REQUIRE THAT MONTHS BE COLLECTED AT CLOSING AND HELD IN RESERVE ON YOUR ACCOUNT UNTIL THE LENDER PAYS YOUR PROPERTY TAXES IN NOVEMBER AND YOUR INSURANCE ONE YEAR FROM NOW.
ASIDE FROM THESE COSTS, YOU NEED TO EXAMINE YOUR CONTRACT CLOSELY TO SEE IF YOU ARE LIABLE FOR ANY OTHER COSTS.
WHILE THIS IS THE TYPICAL REAL ESTATE TRANSACTION SCENARIO IN MIAMI DADE, BROWARD IS A BIT DIFFERENT.
- IN BROWARD, SELLER IS USUALLY THE ONE THAT PAYS THE TITLE INSURANCE PREMIUM
- IN BROWARD, THE DOCUMENTARY STAMP TAXES ON THE DEED PAID BY SELLER ARE $ .70 CENTS FOR EVERY $100.00.
WITH SO MANY FEES AND COSTS INVOLVED, A THOROUGH EXAMINATION OF THE CONTRACT SHOULD BE MADE BY AN EXPERIENCED REAL ESTATE ATTORNEY PRIOR TO SIGNING ANY CONTRACT. YOU MAY NOT KNOW WHAT FEES AND COSTS ARE CUSTOMARY DEPENDING ON YOUR COUNTY, AND ONCE YOU SIGN, THERE IS NO FREEZING OFF PERIOD. YOU ARE STUCK.
DONT GO IT ALONE. HIRE THE SERVICES OF AN EXPERIENCED REAL ESTATE ATTORNEY TO REPRESENT YOU IN YOUR PURCHASE OR SALE.
JACQUELINE A. SALCINES, ESQ. 305 | 669 | 5280