Posted by Bill on July 31, 2001 at 08:42:34:
Yes, I am the Seller and that was a great explanation. I should be able to get a deed and save $50 but I could always get the Buyer to pay for that also. I now know enough to understand all the potential costs.
Again,
Thanks.
Bill
Lot Sale Costs - Posted by Bill
Posted by Bill on July 29, 2001 at 22:42:20:
Bought a lot some years ago and put up for sale. Have a buyer now and want to know what all is absolutely needed to be done to sell this lot. Should I go through a title company? I think I will need at least a Real Estate Purchase Agreement. Will have to pay transfer tax. Assume that a title search is required. How do I determine all my costs involved for both Seller(myself) and Buyer. Buyer said he will pay cash and is ready to purchase now. I just need to determine what we have to do since I have never done it and what are the costs.
Thanks.
Bill
Re: Lot Sale Costs - Posted by Ronald * Starr
Posted by Ronald * Starr on July 30, 2001 at 21:13:58:
Bill-------
Foregot to mention a cost when it is a vacant parcel.
Survey, marking of the corners. If the dimensions and boundaries are not clear, the buyer might want a survey with the corners marked. Cost? Maybe $200-$400. Who pays? You guess my answer to this question [hint: look at other post answer to similar questions].
Good Investing*******Ron Starr***********
Re: Lot Sale Costs - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on July 29, 2001 at 22:52:01:
Presuming that there is no mortgage on the lot your expenses will be the deed preparation, the conveyance fee.
The other expenses are the purchasers expenses. The recording of the deed and the title search (if desired). You (the two of you) may want a title company to do the closing and the recording, there will be a fee for that closing. That fee will vary from place to place, and is often split by both parties. Generally that type of closing is simple and takes only a few minutes. The title company can most likely do the title work, and the deed preparation.
Re: Lot Sale Costs - Posted by Bill
Posted by Bill on July 30, 2001 at 06:39:41:
There is no mortgage. Are these costs negotiable with Title Company? and are there any costs that the Buyer must pay? I am trying to get the Seller to pay most costs on closing so I would like to write the Agreement to state that the Seller will pay … and the Buyer will pay … (as little as possible).
Thanks.
Bill
Re: Lot Sale Costs - Posted by Ronald * Starr
Posted by Ronald * Starr on July 30, 2001 at 21:11:12:
Bill------
This is confusing to me. Your first post seemed to indicate that you are the seller. Now you are trying to get the seller to pay most of the costs. Is this a slip of the typing fingers?
The minimal costs are: The cost of a deed form. Often can be gotten for free here in CA where I am, from the title companies. If not free there, can usually be typed up for free by youself, copying the deed to you. Or you could look at some deeds in the law books or in the county land records and copy them.
The transfer tax. Easily determined by asking the lands record office. Who pays? Negotiable.
The Recording fee for the deed. About $7 to 12 bucks usually. In CA it is more if you don’t use a 8 1/2" X 11" paper. It is more if there is more than one page.
That is it.
Additional possible fees. Escrow holder to hold the deed and money and trasfers them between the two parties. Often done by title companies here in CA, done ususally by attorneys on the East Coast. Not required, but can protect you from giving a deed and getting no money or the buyer from giving the money and getting no deed. Or protect the buyer from you just having put a mortgage on the property before deeding to him/her. Cost about $250 to $400 probably. Who pays? Negotiable.
Title search and title insurance. Benefits buyer. Usually done by a title company. Cost maybe $125 to $275 dollars. Who pays? Negotiable.
There is another matter that the escrow company often handles: “proration of taxes.” Unless the sale takes place on the last day of the tax year for property taxes, there may be the need to adjust things. If you have already paid taxes into the period when the buyer will be an owner, the buyer should reinburse you for the taxes you paid which will cover his/her ownership period. If you have not paid taxes and the buyer will be paying taxes which cover a part of the period when you owned the property, you should pay the buyer your share of the property taxes which can then be paid by the owner to the tax collector when they come due.
You can just adjust your sales price to account for the tax prorations if you wish. If the amount is small, you may just ignore it, if you mutually agree to do so.
Good Investing and Good Selling*************Ron Starr***********
Re: Lot Sale Costs - Posted by Tom – IN
Posted by Tom – IN on July 30, 2001 at 07:39:29:
An excellent example of why you should be using louis brown’s purchase and sale agreements.