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A question that we often get asked is: “When you purchase our property, what will I pay in settlement cost“?
When you work with us at DLA Home Solutions you pay NO Settlement cost! We pay them all!
But you may still be wondering what the typical settlement charges are. Here are the 4 settlement charges that we see the most.
Settlement / Closing /Attorney Fee
This fee is a rate set by each attorneys office. Typical going rate at this point is $650.00
Abstract/ Title Search / Title Examination The title is documentation that shows who has legal ownership of the property. A title search shows who the legal owner is that has the right to transfer their ownership. According to the American Land Title Association, title companies find and fix problems with the title in 25% of transactions-usually without the the borrower or lender even knowing it! Title insurance provides significant value to lenders and homeowners.A title search entails examining the records in the offices of the Register of Deeds, Clerk of Courts, and other municipal and county officials. These records include recorded documents, judgments, liens, taxes, street easements, sewer assessments, special taxes and other matters that could affect property ownership. Through careful examination of these records, it is determined who owns the property and what interests may already exist in that property. This process, called a title search, provides early warnings of title flaws that must be dealt with before the property can be sold or refinanced. Title examination is a close examination of all public records that affect the title to the real estate you are purchasing. The search involves reviewing past deeds, wills, and trusts to make sure the title has passed correctly to each new owner. The examiner tries to verify that all prior mortgages, judgments, and other liens have been paid in full.Defective title refers to a title to real property which is invalid because a claimed prior holder of the title did not have title, or there is an inaccurate description of the property, or some other “cloud” over it, which may or may not be learned from reading the deed. To avoid a defective title problem, a purchaser will often research the chain of title.Chain of title refers to the history of passing of title ownership to real property from the present owner back to the original owner. A record of title documents may be maintained by a registry office or civil law notary. Chains of title include notations of deeds, judgments of distribution from estates, certificates of death of a joint tenant, foreclosures, judgments of quiet title, and other recorded transfers of title to real property. Before purchasing property, the purchaser will usually hire a title companies or abstractors to search out the chain of title and provide a report so that a purchaser will be assured the title is clear of any claims. In many real estate transactions, insurance companies issue title insurance based upon the chain of title to the property when it is transferred.
Document Preparation Fee Attorneys will prepare documents that will need to be signed at closing.These documents can be customized to the transaction and can vary. Some of the common documents are:
Full Closing Documents (Deed of Trust, Warranty Deed, and Promissory Note):Full Closing Documents with Wrap (Warranty Deed with Vendor’s Lien (Wraparound Financing), Deed of Trust (Wraparound Financing), Wraparound Promissory Note, Escrow Account Statement, First Payment Letter):Partial Closing Documents (Promissory Note and Deed of Trust): Fees for the documents are payable at closing, but can be paid in advance by either party.
Most states in the United States use a system of “recording” legal instruments that affect title of real estate. The recording systems are established individually by state. Usually part of this system includes an office of a recorder in each county or other jurisdiction. The names of these offices are usually the “Recorder of Deeds” or something similar. At closing you are charged a fee to have your purchased property recorded. The cost we typically see is $50.00.
If selling your property to other companies some fees are paid by the seller, others are paid by the buyer. When working with us we will pay ALL closing cost!
Give us a call today!