![]() ![]() ![]() Many of the fees listed on the closing statement will have already been paid outside of closing (POC), directly to the service providers as well as other expenses typically associated with closing, such as credit report fees, loan application fees, appraisal fees, and other closing expenses. Expenses typically allocated to the buyer, besides the purchase price, include ½ of the escrow fees, lender's title policy, loan origination fee, loan commitment fee, appraisal of the property, recording fee for transfer of title, and possibly a fee for the credit report. Expenses typically allocated to the seller include the broker's commission, ½ of the escrow fees, recording fees for the loan payoff, seller's title policy, and state or local revenue stamps, indicating the payment of any excise taxes. Just before escrow is closed, both the buyer and the seller receive a closing statement from the escrow officer, which lists the purchase price and all the expenses associated with buying the property and how those expenses will be allocated between the buyer and the seller. Closing costs range from 3% to 6% of the mortgage equaling $9,000 to $18,000 on a $300,000 loan. The duration of the steps necessary to close a real estate transaction is known as escrow. Most real estate closings use the services of an escrow agent, who serves as a third-party that both the buyer and the seller can trust and who coordinates the activities between buyer and seller according to the sale and purchase agreement. Both requirements and costs result from the sales contract itself, from tradition and local custom, and from local, state, and federal laws. ![]() However, there are many requirements and costs associated with closing that make it more complex than buying something at a store. Real estate closing is the transfer of the real estate title from seller to buyer according to the sales contract - the buyer receives the title to the real estate and the seller receives the money. Real Estate Closing and Settlement Procedures › Money › Real Estate Real Estate Closing ![]()
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