Closing costs differ for the seller closing costs and the buyer closing costs. Of course, each side is responsible for their own – unless there has been another agreement made (such as a seller’s concession). The closing is usually held at the buyer’s attorney’s office, and is just that – a “closing” of the mortgage loan and a “closing” of title to the property. Read on to see what you, as the seller, will be responsible for at the closing table.
Keep in mind that your closing costs will vary by transaction. The price of the home, your geographical area, and your contract agreements all play a part in the closing costs. Make sure to speak with your lawyer ahead of time to know what exactly to bring to make sure that the closing happens as smoothly as possible.
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Debits
- Commission. The seller is responsible for paying the commissions to the Realtors on both sides of the Real Estate transaction. Two separate checks should be issued, one to each company. (usually 5-6% of the purchase price of the house, divided as per agreement)
- Transfer tax. This is the legal requirement imposed to transfer title of property from one entity to another.
- Payoff of 1st Mortgage. In order to transfer a clear title, you must payoff what you currently owe on the property. (Unless you don’t have a mortgage anymore and are paid off – then yay for you!)
- Back dues. These are only when applicable. For example; back condo dues, lake dues, association dues, etc. fall under this.
- Lawyer fee. The fee that is owed to your lawyer for representing you during your transaction.
- Seller Credit. If you agreed to give the seller a credit for any inspection issues or a credit towards their closing costs, this will be due now.
Credits
- Property tax. Prorated for what you have already paid toward the rest of the year.
- Purchase price. You will be credited the entire purchase price for you home that was originally agreed on, with any changes made and agreed to throughout the transaction.
Congrats! You have just sold your house! If you didn’t leave the keys at the property or with the Realtor, leave them with your lawyer at the closing. In addition, if you chose to sign and mail in your paperwork ahead of time, make sure you have made arrangements for the keys. ** Also make sure you have the smoke & fire certificate, or have sent a copy to your lawyer and left the original at the house. Since you can’t close without it, you don’t want the closing to get held up over something so silly.
Also, it’s always a nice touch to leave a small gift at the home for the next owners to enjoy. As simple as a card and balloons, or a nice bottle of champagne. Maybe just the best take out menus in the town, or a “welcome” sign.
Now you are ready to move on to your next chapter of life – hopefully with a nice chunk of money towards your journey!
Selling & buying? Be sure to check out what closing costs will be due from you for the buying side!
