I just talked with an attorney, asking how much to close on a property. They gave me a price (around $1,100), but said that my SELLER would also have to get an attorney , so that he can produce a deed for me. I thought that this was something that happened during the whole closing process , without the seller having to do much but sign a few papers. .. but apparently I am confused. Could someone clear this up for me?
The reason I ask is because I don't know if my buyer is planning for this, and I'm trying to make it as easy as possible for him.
You are in PA where the PA Dept of Revenue will expect to collect transfer taxes on both the sale AND the assignment; I assume you will be assigning because you mentioned you had a buyer. Transfer taxes can eat up any profit you might have envisioned when you set out to wholesale a property. In PA a title company is usually used to close a sale, and the title company will normally draw up a new deed as part of the closing. And there will probably be a charge for that if course. An attorney can also draw up a deed, but since this sounds like a sale you should find a title company. Maybe your buyer already uses one.
I want to make things as easy as possible for my SELLER, I meant...
I don't have a buyer yet.. I am paying only 10K , so the transfer tax would only be $100 ,or 2 if I pay the sellers as well.. I just called the closing company, and they said that they could represent the seller as well, and that his fees would be about 630 including the transfer tax of $100. That seems so high. I thought that sellers didn't have much of an expense in closing. Rgh.
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