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Everything is negotiable. In the US, the closing costs are mostly a buyer expense. The Seller has some closing costs such as commission to a listing agent if one is used, deed preparation, and revenue stamp fees charged by the state or locality. Often the buyer will have the seller pay a portion of closing costs to conserve cash, while paying a slightly higher price. Many large builders are also in the mortgage business and pay some closing costs to have another revenue stream.
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Does the seller to pay closing cost?
Generally the buyer pays closing costs. Some closing costs legally MUST be paid by the buyer. However, the seller could offer to pay some costs if they want to, or the buyer could ask the seller to pay some of the closing costs. Ultimately the seller has to decide how badly they want to make the sale.
When renegotiating conscessions in a real estate contract gets convoluted?
Remember to a seller they want to know what their 'net' price is on a sale of real estate property. So however you negotiate such things as closing cost concessions or any credits or share of repair costs for the property, it means less monies for the seller. Simpler is better in a real estate contract. In a hot market, concessions requested may put you as a buyer at a disadvantage in obtaining the property. In a slower selling market, as a buyer you may have more leverage to request closing cost credits or repairs being done prior to closing. A knowledgeable real estate agent should be able to guide you well in either market.
Who pays the title opinion in real estate?
The title opinion is a written statement confirming the ownership rights of the property. Both the buyer and the buyers lender need to know that the seller is in a position to convey the property. Since the attorney prepares the title opinion on the buyers behalf it's the buyer who pays for it. (This would be considered a closing cost on the buyer's side).
Is there a law that states the seller only pays 3 percent of the closing costs?
Yes, but only for FHA loans. As of last week many FHA guidelines were changed. One of those Guidelines include the percentage buyers can obtain in Seller provided closing cost. Previously, a buyer could receive up to 6% of the purchase price from the seller for nonrecurring closing cost (in the state of California and I believe nationwide but I am not sure). As of last week the max is 3%. This reduction is said to prevent inflation of sell prices. Generally, a seller will increase the asking price of any given property with the assumption that the buyer will require up to 6% back to cover closing cost, this process inflates the market value of a house. I hope this answers your questions Shira Crawford Realty World Agent Monterey, California (949) 232-3232
In dual agency who pays the closing cost in a purchase transaction?
Dual agency occurs when one broker or salesperson represents both parties to a transaction, or when two salespersons licensed to the same broker each represent a party to the transaction. Closing costs are a negotiable item between the buyer and the seller in the purchase agreement.
Does the seller to pay closing cost?
Generally the buyer pays closing costs. Some closing costs legally MUST be paid by the buyer. However, the seller could offer to pay some costs if they want to, or the buyer could ask the seller to pay some of the closing costs. Ultimately the seller has to decide how badly they want to make the sale.
Before the closing of a house can the builder deny the buyer to the house if he is willing to pay back the entire cost?
Only if Buyer and Seller (Builder) agree.
When renegotiating conscessions in a real estate contract gets convoluted?
Remember to a seller they want to know what their 'net' price is on a sale of real estate property. So however you negotiate such things as closing cost concessions or any credits or share of repair costs for the property, it means less monies for the seller. Simpler is better in a real estate contract. In a hot market, concessions requested may put you as a buyer at a disadvantage in obtaining the property. In a slower selling market, as a buyer you may have more leverage to request closing cost credits or repairs being done prior to closing. A knowledgeable real estate agent should be able to guide you well in either market.
Who pays for the title examination the buyer or seller of real estate?
Practices may vary in different jurisdictions. Generally the buyer's attorney arranges to have the title examined and the buyer pays the fee as part of their closing costs. However, if a title defect is disclosed and further research and corrective work must be done those costs are shifted to the seller. The issue could also be negotiated whereby the title exam cost is paid by the seller.
Who pays the title opinion in real estate?
The title opinion is a written statement confirming the ownership rights of the property. Both the buyer and the buyers lender need to know that the seller is in a position to convey the property. Since the attorney prepares the title opinion on the buyers behalf it's the buyer who pays for it. (This would be considered a closing cost on the buyer's side).
Is there a law that states the seller only pays 3 percent of the closing costs?
Yes, but only for FHA loans. As of last week many FHA guidelines were changed. One of those Guidelines include the percentage buyers can obtain in Seller provided closing cost. Previously, a buyer could receive up to 6% of the purchase price from the seller for nonrecurring closing cost (in the state of California and I believe nationwide but I am not sure). As of last week the max is 3%. This reduction is said to prevent inflation of sell prices. Generally, a seller will increase the asking price of any given property with the assumption that the buyer will require up to 6% back to cover closing cost, this process inflates the market value of a house. I hope this answers your questions Shira Crawford Realty World Agent Monterey, California (949) 232-3232
Offer to Purchase Real Estate?
Offer to Purchase Real Estate(Download)To: ____________, ______________, _____________, _________________________________, referred to herein as BUYER, offers to purchase the following described real estate from ____________, referred to herein as SELLER, upon the terms and conditions stated herein.This offer shall expire unless accepted by 5:00 p.m. on ____ ________. SELLER shall signify acceptance by executing the attached form of acceptance.The gross purchase price shall be $ ________ (___________ &___/100 dollars). The legal description of the property is:_________________________________________________________________To be paid upon the following terms:$ _____(______________ &___/100 Dollars), to be paid at closing.The buyer shall assume and agree to pay the following existing mortgages upon the property. The unpaid principal balance of these mortgages shall be a credit towards the purchase price:_____________________________________________________________At least 5 business days before closing, SELLER shall provide to BUYER estoppel letters providing the balance, assumability and current good standing of the above stated mortgage(s).The BUYER shall execute a new purchase money mortgage to SELLER, in the principal amount of $________, (___________________ &___/100 dollars) payable as follows:Interest at the rate of: __ percent Payment schedule: _______Said mortgage shall have the following priority:_____________________________________________________________This offer is conditioned upon BUYER obtaining loan approval at least __ days prior to closing of this transaction, of a mortgage loan as follows:Principal amount: $______ (____________________ &___/100 Dollars)Loan term: ____________Maximum interest rate as APR under regulation Z: ____ percentMaximum points to be paid by BUYER: ____Maximum application fee: $____BUYER shall make a mortgage loan application within 3 working days of the acceptance of this offer, and should the BUYERs loan application be denied, the BUYER shall have the option, within 2 business days to rescind this transaction. If BUYER elects to rescind the transaction, BUYER shall receive any deposits made from SELLER.The closing will be held within ____ days of the acceptance of this offer to the SELLER, but in no event in less than 20 days from the notice. The SELLER shall convey to the owner by warranty deed the property herein, and the title thereto shall be merchantable. Within 30 days of acceptance, the SELLER shall provide a binder for title insurance in the principal amount of the purchase price. The title shall be free and clear of any encumbrances other than those, if any, to be assumed by the BUYER at closing. Should any defects be in the title, the SELLER shall have 60 days to clear the same. If the SELLER is unable to do so, BUYER shall have the option of closing or rescinding this contract. Should BUYER rescind the contract, then the SELLER shall refund as liquidated damages, and not a penalty, the funds paid for the option to BUYER.The BUYER may at its expense obtain a current survey of the property. Should the survey indicate encroachments, then the SELLER shall remedy the same within 60 days. Should SELLER fail to clear such encroachments, then the BUYER shall have the option of closing or rescinding this contract. Should BUYER rescind the contract, then the SELLER shall refund as liquidated damages, and not a penalty, the funds paid for the option to BUYER.The SELLER shall maintain the property and all improvements in the same condition as that which exists on the date of acceptance of this agreement, and shall deliver the same to the BUYER in the same condition, ordinary wear and tear excepted.At closing, SELLER shall provide a report from a licensed entomologist certifying the absence of termites and other wood destroying organisms. Should the report show the active presence of any wood destroying organisms, and the BUYER shall have the following options:a) if the damage and cost of treatment is less than 10% of the purchase price, the BUYER may withhold this sum and close, and the same shall be a credit on the sums due at closing;b) if the damage exceeds 10% the BUYER may agree to an extension of closing for 90 days to allow SELLER to repair the same at its expense, or, the BUYER may refuse to close, and shall have the sums paid for the option fully refunded by SELLER.During the period between exercise of the option by the buyer and the closing the premises shall be adequately insured for fire and other perils.The following closing costs will be paid by SELLER:________________________________________________________________The following closing costs will be paid by BUYER:________________________________________________________________The parties hereto acknowledge that ___________, a licensed real estate broker/salesman was the procuring broker herein.Should the premises or any portion thereof be leased, SELLER shall provide to the BUYER either a copy of and any all leases in effect, or, should there be any tenants in possession without current written leases, the SELLER shall provide estoppel letters at least 5 days prior to closing stating that there is no lease and the duration of any verbal lease, and the terms of the verbal lease.All taxes for the current year, escrows on mortgages assumed by the BUYER, prepaid insurance on policies assumed by BUYER, homeowners association dues, shall be prorated between the parties as of the date of closing.At the time of closing SELLER shall provide an affidavit toBUYER that either:a) there have been no improvements made which would subject the property to the filing of mechanics, materialman, labor or other such liens; orb) that there were improvements made to the subject property and all persons having the right under law to lien the property were paid or lien waivers obtained.The SELLER represents to the BUYER that the present use of the property is lawful and complies with all zoning, governmental regulations and restrictive covenants and other similar contracts in effect.Dated: _______________________________________________________________________________, BUYER/OFFERORACCEPTANCE OF OFFERI hereby accept the offer set forth above.Dated: ________________________________________________________________________________, SELLER/OFFEREEWitnesses as to Sellers acceptance:________________________________________________________________________________Offer to Purchase Real EstateReview ListThis review list is provided to inform you about this document in question and assist you in its preparation. This is a standard offer to purchase real estate. Be sure to modify the terms to satisfy your interests.1. Make multiple copies. Give one to each signatory. Keep one with the transaction file.2. This is sufficient to close the transaction. There is no need, unless you choose, to formalize this into a purchase and sale agreement. In fact, avoiding another “go round” can prevent the other side from another bite at the apple, so to speak.3.
In dual agency who pays the closing cost in a purchase transaction?
Dual agency occurs when one broker or salesperson represents both parties to a transaction, or when two salespersons licensed to the same broker each represent a party to the transaction. Closing costs are a negotiable item between the buyer and the seller in the purchase agreement.
How does a 90 percent loan to value with a six percent seller's concession work?
You would have to come up with 10% of the cost of the house. The seller is willing to give 6% back to you for closing cost.
What advice should be given to a first-time home buyer when dealing with a mortgage broker and real estate agent?
Perhaps, some other colleague can contribute about Mortgage Brokers.I will endeavor to respond on the topic of my expertise:Real Estate Broker/Agents If you are the market for a real estate property, I think you owe it to yourself, and your loved ones, to know the difference between a traditional [seller's] broker and our [buyer's broker] services. In other words: If you wouldn't use your spouse's attorney when filing for divorce, neither should you use a traditional [seller's] broker when buying real estate. Why? Just like your spouse's attorney, traditional [seller's] brokers have a legal obligation to other side's [seller's] best interest and not yours [the buyer]. Unless agreed to [in writing] the traditional brokers mentioned above work for the seller's best interest and not the buyer's. In other words, NOT using a buyer's-broker would be like using your spouse's attorney when filing your divorce. Be sure that you Buyer-Broker can guarantee you they: * Will NEVER list properties for sale (or work for a broker who does!) * Will NEVER represent sellers * Will ONLY represent buyers like YOU * Will GUARANTEE YOU'LL SAVE MONEY * Finally, WILL find you the best home at the lowest cost! Brought to you by:www.thefreenotary.com(718) FREE-NOTARY / 373-3668 and Angel L. Cruz,New York CityLicensed Real Estate [buyer] Broker
What is seller?
The term can take on slightly different meanings depending on exactly where it is used. In the context of a home sale, it generally indicates something like a fee, cost or "giveback" (even action), rather than a reduction of the purchase price, that is commonly an expense of the buyuer or benefit to the seller, the seller is agreeing to "concede" to the buyer. For example "for acceptance of the offer within 24 hours, the seller agrees to credit the buyer $1,000 to be applied toward the closing costs". Lenders are concerned that a deal showing a certain % downpayment may use these to skew the numbers and essesntially involve seller financing or mask the source of funds, or such.
What is a credit notes?
A credit note (also known as a credit memorandum or credit memo) is a document that is issued by a seller to a buyer. The credit note is used to reimburse a buyer for goods that have been returned to the seller or for goods/services that were not received by a buyer.
