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Tips
For Closing Your Sale or Purchase
Contracts: A verbal agreement to buy or sell real estate is not enforceable in Florida. You must have a written agreement outlining the basic terms. This article will give you some of the basics. Most buyers and sellers can agree upon a purchase and sale price. You can research prior real estate sales in Alachua County by accessing the Alachua County Property Appraiser's Office online at www.acpafl.org and by searching by name, address, tax parcel number or subdivision. This site will also provide other information about the property. The State of Florida collects documentary stamps, similar to sales tax, on the transfer of real estate, at a cost of $7.00 per $1,000.00 of sales price. On a sales price of $100,000.00, the documentary tax would be $700.00. This is usually paid by the Seller. There is also a nominal fee to record the deed in the amount of $6.00 for the first page and $4.50 for each additional page. This fee is usually paid by the Buyer. A Buyer will want to know that the title to the property is marketable, that is without liens or title defects. Most Buyers will want Title Insurance which insures that the title is marketable. In North Florida this cost is usually paid by the Seller. Please call our office for an estimate. On a sales price of $100,000.00, the owner title insurance policy will cost around $875.00. A Buyer should also obtain a boundary survey to determine that the improvements are located on the real estate, do not encroach onto the neighboring property, over a building setback line or an easement. This cost is usually paid by the Buyer who can expect to spend $350.00 to $450.00 for the survey of a subdivision lot. The Buyer may want to have a contract which is contingent upon an inspection of the property. The cost of the inspection is usually paid by the Buyer. The Seller and Buyer will want to provide in the contract who will be responsible for any repairs. A termite inspection is generally completed no more than 30 days before closing and can be paid by either the Seller or the Buyer. Ad valorem taxes and homeowner association dues are prorated at closing. Homeowner's Insurance is not assumable by the Buyer who must obtain a new policy. The insurance premium is generally prepaid for one year. Most lenders will require that taxes and insurance be escrowed with the lender. If the Buyer is financing the purchase, most lenders will request at least 30 days to process the loan. The Buyer will usually be required to pay an application fee which covers the cost of the credit report and an appraisal of the real estate. At closing the Lender will collect additional charges for such things as an underwriting fee, processing fee, document preparation, tax service fee, courier fee, flood certification fee, and origination fee. These charges will be disclosed to the Buyer within 3 days of the Buyer's application with the Lender in a document called a Good Faith Estimate. Buyers should compare not only the interest rate quoted by the Lender but also the Lender's charges when shopping for a loan. The State of Florida collects documentary stamps on the promissory note to the Lender in the amount of $3.50 per thousand and a millage fee of .002 on the mortgage. It is not unusual for Buyer's closing costs and escrow to total $3,000.00 to $4,000.00. Leasing A lease for more than one year must be in writing to be enforceable. We recommend that everyone have a written lease which covers rent, late fees, security deposit, maintenance and repair, term, default, and whether a sublease s permitted. f a security deposit or last month's rent is held by the Landlord, Florida law regulates how the security deposit is held and provides disclosures which must be given to the tenant. Please call our office for a copy of Florida Statute Section 83.49. Financing A lender is looking at the borrower's credit, capacity, character, and collateral when making a loan:
Useful
Information: To obtain a FREE CREDIT REPORT and $200 OFF TOWARDS CLOSING
FEES contact our FSBO in Gainesville
GPS Member Mortgage Professionals:
352-375-3580
Ext. 229 E-mail:
eric_hellkamp@countrywide.com |
Cameron
and Cameron Mortgage Corporation