Real Estate Lawyer New York, NY
Buying or selling a property is more than simply transferring a title of ownership from one party to another. It is a complex, time-consuming process that involves costs beyond the sale price or down payment. Whether you are selling your property or buying a property, it is important to understand the various costs, what direction they are coming from, and why they are required. Some of these are difficult to predict or will depend on inspection or legal fees while others have to do with the terms of a mortgage. No matter what side you are on, it is advisable to prepare yourself for these costs. If you don’t understand them, you can always seek legal advice from a qualified real estate lawyer in New York, NY.
Closing Costs for a Buyer
The following are common closing costs to expect.
- Legal Fees and Disbursement
If you are in the process of purchasing a new property, you might already have a real estate lawyer reviewing and processing important documents, and ensuring that the property meets New York, NY inspection standards. A real estate lawyer’s fees can vary significantly and will depend on whether expenses for a notary public, searches, or other legal activities are included.
- Title Inspection
A title inspection will need to be performed to determine whether or not the seller legitimately owns the property and that there is no liens or mortgages on it. A real estate lawyer may do this for you, or you can hire a title company.
- Land Transfer Tax
In general this will be based on the percentage of the selling price and is applicable when the property changes ownership.
- Mortgage Tax and Other Fees
In general, most mortgages do not carry a fee, but some do. A mortgage might also have an appraisal fee ranging anywhere from $100 to $1000. You might also be required to purchase mortgage insurance to cover any potential defaulting or financial problems that affect your future payments. Usually default insurance is necessary when you put a downpayment of less than 20%.
- Home and Title Insurance
A majority of mortgages will require basic home insurance. You may also want to consider title insurance which can protect you from fraud or identity theft associated with your mortgage. A real estate lawyer can explain this to you and let you know whether or not you should have it.
- Adjustment Costs
While the closing process is going through, there will be small accumulating costs such as bills and property tax. Once the buyer takes over the property, all of these costs belong to him or her. For example, if property taxes are owed, the seller should pay their final share of them before the buyer gains control over the property.
Closing Costs for a Seller
If you are selling a property, some costs to expect include:
- A Realtor Commission
If you used a realtor to sell your property, you will need to pay a commission once the sale has been completed. This will depend on your initial agreement and could include a commission of anywhere between 2% and 5% of the selling price.
- Legal Fees
You may hire a real estate lawyer to assist in discharging the title, taking care of adjustment costs, and any disbursements that were incurred during the selling process.
- Mortgage Discharge
If you were still paying on a mortgage at the time of the sale, you may have to pay various penalty fees or other charges before you can relinquish the mortgage.
There may be additional costs for buyers or sellers of a property. These will depend on many factors such as the location, type of property, age of the property, and more. If you would like to learn more about the costs associated with buying or selling a property, you can speak to a real estate lawyer New York, NY residents trust by calling Okun, Oddo & Babat, P.C. today.