Seller Closing Costs Review and Options

Seller Closing Costs Review and Options

Member since 2024 · 17 posts · 4 votes

Background:

Miami-Dade Condo property.
I am a first-time seller.
No mortgages or loans on my property.
Standard Florida Realtors Association / Florida Bar AS IS Purchase Contract.
Buyer in default on various provisions and must proceed to purchase as a cash purchase, per contract, so there should be no financing related title charge son my end.

Contract only lists the following seller/closing/title fees:

A.Documentary stamp taxes and surtax on deed, if any
B. Title search charges
C. Municipal lien search
D. HOA/Condominium Association estoppel fees
E. Recording and other fees needed to cure title
F. Seller's attorneys' fees
G. Other: Not applicable. 

Additional relevant provisions in the contracts:
"Title Evidence and Insurance: a title insurance commitment issued by a Florida licensed title insurer, with legible copies of instruments listed as exceptions attached thereto ("Title Commitment") and, after Closing, an owner's policy of title insurance (see STANDARD A for terms) shall be obtained by the Buyer. If Seller has an owner's policy of title insurance covering the Real Property, Seller shall furnish a copy to Buyer and Closing Agent within 5 days after Effective Date. The owner's title policy premium, title search and closing services (collectively, "Owner's Policy and Charges") shall be paid, as set forth below. The title insurance premium charges for the owner's policy and any lender's policy will be calculated and allocated in accordance with Florida law, but may be reported differently on certain federally mandated closing disclosures and other closing documents. For purposes of this Contract "municipal lien search" means a search of records necessary for the owner's policy of title insurance to be issued without exception for unrecorded
liens imposed pursuant to Chapters 153, 159 or 170, F.S., in favor of any governmental body, authority or agency.

[MIAMI-DADE/BROWARD REGIONAL PROVISION]: Buyer shall designate Closing Agent. Seller shall furnish a copy of a prior owner's policy of title insurance or other evidence of title and pay fees for: (A) a continuation or update of such title evidence, which is acceptable to Buyer's title insurance underwriter for reissue of coverage; (B) tax search; and (C) municipal lien search. Buyer shall obtain and pay for post-Closing
continuation and premium for Buyer's owner's policy, and if applicable, Buyer's lender's policy. Seller shall not be obligated to pay more than $_____________ (if left blank, then $200.00) for abstract continuation or title search ordered or performed by Closing Agent."

I asked for a sample estimate ahead of time to make sure I can check everything.

ALTA Seller's Settlement Statement provided by the buyer's title company lists:

H. Prorated county taxes [lists the amounts for January of this year through closing date]. Even though this isn't anywhere I can see in the contract, I presume to clear the title I have to pay this off.

I. Documentary tax stamp deed to the Clerk of Court [ I verified this as correct for our area]

J. Commissions for the agents: [I verified this as correct]

K. "Consumer Electronic File Storage": $25 [this seems like a bs addon]

L. Wire/Fedex/Courier Fee: $100

M. Municipal Lien Search $400

N. Settlement Fee to Title Company: $895 [I think this is high and seems like they are putting the entire settlement fee on my side and its not listed under my contract costs above]

O. Title Search: $200

P. E-Recording: $18

Q. Recording affidavits and death certificates: $100 [ I gained the property by rights of survivorship and the past owner died but we need to update the title]

My Questions:

1. My understanding is that I do not need to use the Buyer's title company and can choose my own to prepare my seller papers. Is this correct?

2. Do the above fees H through Q look reasonable based on what is typical?

4. Do the fees listed above appear to match what I am required to pay per the contract terms above? For example, I don't see Consumer File Storage or Settlement fee listed in my contract obligations.

3. Are there any fees listed that generally would be paid by the Buyer?

Any responses, advice or suggestions will be greatly appreciated. 

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  • Member since 2018 · 1k+ posts · 1k+ votes
    2y

    He’s in default. Demand he shows proof of funds immediately to close on schedule and if he doesn’t Declare forfeiture of earnest money and right to purchase terminated. Then move on

  • Member since 2018 · 1k+ posts · 1k+ votes
    2y

    He’s in default. Demand he shows proof of funds immediately to close on schedule and if he doesn’t Declare forfeiture of earnest money and right to purchase terminated. Then move on

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Marcus Welson

    Those all look reasonable

    The $25 fee seems cheesy but is it worth arguing over $25

    Why would you not want to use the buyers title company?

    7e investments53 Reviews
  • Member since 2024 · 17 posts · 4 votes
    2y

    Thank you for your thoughts:

    @John Clark : This is a Florida Condo where I am not under special assessments currently and the market has moved, creating a $50k to $70k shift in price and appraisal value if I move on to a new buyer. Buyer has ability to close, so it's a smaller loss to have the complete the purchase before the market gets worse. 

    @Chris Seveney: As a first time seller I didn't know if the fees were reasonable. I compared the ALTA to a family member's sale last year and saw about a $1400 difference. Mainly, the one I compared to split the settlement fee between buyer and seller and the title and lien search were $250 cheaper. I was told by my realtor I could use my own title agent so I didn't know if that would help me reduce costs. Is the settlement fee something I have to pay since it wasn't a line item listed in the contract for seller's title expenses?

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