Sales commission: Most charges are a porcentage of the selling price. The commission is typically 6% but keep in mind that no one makes off with the hole amount.
Mortgage Pay Off: Before the closing, you will sign a release for the Title Company or Attorney to get the amount that will be owed at the day of closing. This will allow the Closing Company to prepare the closing documents and they will issue a check out of your proceeds at the closing to pay off your outstanding mortgage.
Lines of credit or Equity lines: As with the mortgage pay off, you will have to authorize the closing company to get this information. If there is any amounts owed, they also will be paid off and any lines of credit closed.
Prepayment Penalty: Often, sellers think that all that is owed is the amount showing on their last statement. This is not always true. A prepayment penalty could be in your mortgage. You may also owe interest depending on the day of the month that you close.
Title search charges Taxes/Liens: Prior to closing the closing company search if there are any liens or unpaid taxes on the title. These items will also have to be paid the day of closing. The title company cuts these checks out of your proceeds and pay them off on your behalf. Prices vary, usually is around U$s150/200.
City/Town taxes: The well known property tax are prorrated until the date of selling and will be deducted from the proceeds.
Special Assessments: Special assessments are local government improvements that were assessed to the property like water, sewer, road or other local improvements. In CONDOS special assessments are needed when the HOA board has decided not to provide reserves and experience an emergency or a major expense. In most cases they must be paid off by seller, in others, they can be assumed by the buyer. If they are to be paid off, the closing company will pay these out of your proceeds.
Government recordings and transfer charge: State tax / Stamps.
Additional Settlements charges: Usually this is used when you sell at a condominium, sellers need to order a condo ESTOPPEL LETTER, where it reflects all the outstanding fees and fines due. In Florida, if there is a clerical error found in your estoppel letter, they must follow the protocols found in state statutes to amend it within a certain time frame, otherwise the letter is legally binding. Is a MUST DOCUMENT for buyers or investors buying at a foreclosed unit, since could lead to hidden costs. The price for this vary, usually is around U$s 250.
1031 EXCHANGE:1031 exchange: Selling your home is one of the biggest financial decisions you'll make. In real estate, a 1031 exchange is a swap of one investment property for another that allows capital gains taxes, to be deferred. The costs varies around u$s 700. I work with the most efficient team.
